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

CMG:

Data shows that industrial value added among enterprises above the designated size grew 6.4%year on year in the first half of 2025, maintaining steady performance. How do you view the current state of the industrial economy? What further measures will be taken to support industrial growth? Thank you.

Xie Shaofeng:

Thank you for your questions. Since the beginning of this year, we've fully implemented policies aimed at stabilizing employment and the economy, as well as initiatives focused on major national strategies and enhancing security capacity in key areas. We've also increased support for a new round of large-scale equipment upgrades and consumer goods trade-in programs. Working closely with local governments, we have intensified efforts in policy support, project implementation, supply-demand matching and business services. By leveraging the solid foundation, strong resilience and vibrant innovation of China's industrial economy, we have maintained steady progress. In the first quarter, the value added of industries above the designated size increased 6.5% year on year, while in the second quarter it increased 6.3% year on year, building on already high levels from last year.

First, key industries are providing strong support, with electrical machinery, automobiles, electronics, general equipment, chemicals and non-ferrous metals recording rapid growth, further increasing their contribution to the expansion of industrial enterprises above designated size. The equipment manufacturing and high-tech manufacturing industries have achieved both an increase in quantity and quality, with the value added accounting for 35.5% and 16.4% of industrial enterprises above designated size, respectively. Profits in electronics, electrical machinery, and general equipment have risen by more than 10%. Second, major industrial provinces are playing a leading role, with all 31 provinces maintaining growth in industrial value added of enterprises above designated size and achieving year-on-year increases. Among them, Fujian, Anhui, Henan, and Hunan achieved growth of more than 8%. Eight major industrial provinces posted profit growth rates higher than the national average, with Henan, Hunan, Hubei, and Jiangsu achieving double-digit growth.

At the same time, the industrial economy still confronts significant challenges in maintaining stable performance and achieving high-quality development. External uncertainties require strengthened responses, and structural problems in the industry need to be properly resolved. Moving forward, we will continue efforts to consolidate foundations, improve quality, cultivate momentum and optimize the environment, focusing on the following key tasks.

First, we will consolidate the basic foundation of the industrial economy. We will implement a new round of work plans to stabilize growth in 10 key industries, including steel, non-ferrous metals, petrochemicals and building materials. We will encourage key industries to focus on structural adjustment, supply optimization and the elimination of outdated production capacity. Specific work plans will be released successively in the near future. We will support key industrial provinces in playing a leading role through implementing supportive policies, cultivating new growth drivers, promoting industrial transformation, improving operational quality and efficiency, and responding to external risks. Through intensified efforts, we will consolidate the foundation for stable industrial economic operation.

Second, we will focus on improving development quality. We will steadily advance the integrated development of technological and industrial innovation, coordinate the advancement of industrial foundation reengineering and major technical equipment breakthroughs, continuously implement the manufacturing excellence quality project, and drive all industries toward high-end development. We will accelerate the implementation of the Artificial Intelligence Plus initiative, promote the deployment of large language models in key manufacturing sectors, and enhance intelligence levels. We will promote the construction of a green and low-carbon standards system, accelerate the comprehensive utilization of renewable resources, including power batteries, and strengthen the foundation for green development.

Third, we will continue to cultivate growth drivers. We will organize and implement major national science and technology projects and key national R&D programs, conduct targeted initiatives, cultivate new industries and create new momentum. We will also accelerate the development of the biomanufacturing and low-altitude industries. We will advance the innovative development of future industries, including humanoid robots, the metaverse and brain-computer interfaces, and strategically position China in new domains and emerging sectors.

Fourth, we will continuously optimize the development environment. We will carry out targeted campaigns to intensify efforts to resolve the problem of payment arrears to SMEs, reduce burdens on businesses, and effectively enhance their sense of gain. We will strengthen the role of standards to support and guide technological progress as well as industrial optimization and upgrading. We will enhance capacity monitoring and early warning systems, promote industry self-discipline, and optimize the development ecosystem. We will continue to improve regular communication and exchange mechanisms with enterprises and the closed-loop problem-solving mechanism, thereby strengthening their development confidence. Thank you.