SCIO briefing on development of industry and information technology in H1 2025

Daxiang News:

Could you introduce the overall situation regarding the development of China's equipment manufacturing industry in the first half of this year? In which fields have there been new highlights and breakthroughs? Going forward, what measures will be taken to further support the high-quality development of the equipment manufacturing industry? Thank you.

Xie Shaofeng:

I would like to invite Ms. Tao to answer your questions.

Tao Qing:

Thank you for your questions. In the first half of this year, China's equipment manufacturing industry maintained good growth momentum, accounting for 35.5% of the value added of industrial enterprises above designated size. It has fully played the role of a stabilizer in industrial development, showing a development trend of improving both quantity and quality, and striving both in excellence and innovation.

Looking at the overall situation of the industry, both production and profits are growing well. The value added of equipment manufacturing increased by 10.2% yearon year, driving industrial enterprises above designated size to increase by 3.4 percentage points. From January to May, profits from the equipment manufacturing industry increased by 7.2% year on year, driving the profit growth of all industrial enterprises above designated size by 2.4 percentage points. Both production and sales of key products are booming. The output of most key monitored products increased year on year, among which railway passenger and freight transport vehicles, special packaging equipment, and charging piles all achieved relatively rapid growth. The cumulative decline in the producer price index (PPI) for five industries narrowed or remained flat from January to May, and the export price index of the equipment manufacturing industry has risen for two consecutive months. Investment in key industries has been on an upward trajectory. Fixed asset investment in manufacturing sectors, such as the railways, shipping, aerospace and other transportation equipment, automobiles and general equipment, achieved double-digit growth. Driven by intensified efforts to promote large-scale equipment renewals and consumer goods trade-ins, investment in the purchase of equipment and tools increased by 17.3% yea on year, with a growth rate 14.5 percentage points higher than the national fixed asset investment, contributing 86% to total investment growth.

There has been a steady flow of major technological breakthrough products, showcasing the vitality of high-quality development across various fields.

First, let's take a look at the achievements in the aerospace field. Aviation equipment has reached new heights of development. The AG600 large amphibious firefighting aircraft has obtained its type certificate and production license from the Civil Aviation Administration of China (CAAC); and the AS700D, the first independently developed electric manned airship, completed its maiden scientific research flight. There are 809 companies registered in the civil unmanned aerial vehicle (UAV) product information system, with over 3.74 million products, playing an important role in emergency rescue, agriculture and forestry protection, and logistics distribution.

Next, let's look at what's happening on the ground. China's automotive industry continues to maintain rapid growth. In the first half of the year, automobile production reached 15.621 million units, up 12.5% year on year, while sales reached 15.653 million units, up 11.4% year on year. Among them, production of new energy vehicles (NEVs) reached 6.968 million units, up 41.4% year on year, while sales hit 6.937 million units, rising 40.3% year on year. NEVs accounted for 44.3% of total new car sales, with cumulative exports totaling 1.06 million units, up 75.2% year on year.

Finally, looking at developments in the maritime sector, the shipbuilding industry is setting new benchmarks for growth. In the first half of the year, the Adora Magic City, China's first domestically built large cruise ship, welcomed over 470,000 tourists. Construction of the second large cruise ship, the Adora Flora City, is progressing smoothly, with the vessel successfully floated and overall construction now 78% complete. Additionally, China delivered its first domestically built 16,000-TEU (twenty-foot equivalent unit) methanol dual-fuel container ship. By deadweight tonnage, China accounted for 51.7% of global ship completions, 68.3% of new orders, and 64.9% of orders on hand.

Looking ahead, we will concentrate on two major actions to drive high-quality development in the equipment manufacturing sector. First, we will launch a new round of growth stabilization measures. We will soon roll out action plans for stabilizing growth across the machinery, automotive and power equipment industries. These plans will boost quality supply capacity, optimize the industrial development environment, and drive effective quality upgrades while appropriately expanding economic output. Second, we will implement initiatives for smart and green transformation. We will release a digital transformation plan for the auto industry. We will also implement digitalization strategies for the machinery and power equipment sectors. Additionally, we will introduce green development guidelines for the aviation and shipbuilding industries. Meanwhile, we will accelerate the development of smart equipment, promote intelligent factories at all levels, and build smart service ecosystems to advance the digital and green development of the equipment manufacturing industry. Thank you.