SCIO briefing on China's economic performance in August 2025

Dazhong Daily:

Since the beginning of this year, China's national economy has continued to demonstrate strong resilience. How would you evaluate the economic performance in August, and what are the highlights and positive changes? Thank you.

Fu Linghui:

Thank you for your question. In August, under the strong leadership of the CPC Central Committee, all regions and government departments thoroughly implemented the decisions and deployments of the CPC Central Committee and the State Council, accelerated the implementation of more proactive and effective macro policies, advanced the in-depth construction of a unified national market, actively strengthened domestic circulation, and maintained generally stable national economic performance, with solid progress made in high-quality development. The main highlights are as follows.

First, production has maintained steady growth. In terms of agriculture, early rice output increased slightly, while the sown area for autumn grain remained stable with a slight expansion, and the overall growth was normal. Livestock production has remained stable. In the industrial sector, the value added of industrial enterprises above designated size grew by 5.2% year on year in August, continuing its relatively rapid growth. The manufacturing sector demonstrated a favorable development trend, with its value added increasing by 5.7% in August, outpacing the overall growth rate of industrial enterprises above designated size. In terms of services, the services production index rose by 5.6% year on year in August, showing stronger growth momentum than the industrial sector. Boosted by increased travel during the summer holiday season, the growth rate of the production index for accommodation and catering services accelerated compared to the previous month.

Second, domestic demand has continued to expand. In terms of consumption, the total retail sales of consumer goods increased by 3.4% year on year in August, and the retail sales of goods related to China's consumer goods trade-in programs continued to grow rapidly. The potential for service consumption is also being continuously unleashed, with sectors like tourism and leisure, live performances and sporting events, and information and communication services being relatively vibrant. In the first eight months, service retail sales grew 5.1% compared with the same period last year, outpacing the growth rate of goods retail sales. In terms of investment, fixed-asset investment from January to August increased by 0.5% compared to the same period last year. Notably, investment in manufacturing — which increased by 5.1% — grew significantly faster than the overall investment, providing solid support for the upgrading and development of the manufacturing sector.

Third, foreign trade and foreign exchange reserves have increased. Against a challenging backdrop of weak global economic growth and significant uncertainties in international trade, China's goods trade has continued to underscore its resilience. In August, the total value of goods imports and exports grew by 3.5% year on year, marking the third consecutive month of expansion for both exports and imports. Exports of mechanical and electrical products grew rapidly, with their export value rising by 9.2% year on year from January to August. By the end of August, China's foreign exchange reserves had increased by $29.9 billion compared to the previous month, demonstrating an overall trend of stability with positive growth.

Second, the economic performance has remained generally stable. Judging from the changes in indicators, the main production and demand indicators showed steady growth through the first eight months. From January to August, growth rates for value added of industrial enterprises above the designated size, the service industry production index, total retail sales of consumer goods, and goods imports and exports remained essentially unchanged from the rates seen between January and July, indicating that the stability of economic growth has been maintained. In terms of employment, the national surveyed urban unemployment rate in August was 5.3%. Although it slightly increased compared to the previous month, due to the graduation season, it remained the same as the same period last year. The surveyed unemployment rate of the primary working-age population aged 30-59 remained flat both month to month and year on year, further demonstrating that the stability of employment has not changed. From the perspective of prices, the consumer price index (CPI) in August decreased by 0.4% year on year, mainly dragged down by declining food prices. The core CPI excluding food and energy increased by 0.9% year on year, with the growth rate expanding for four consecutive months, indicating that the stability of prices has not changed.

Fifth, transformation and upgrading has continued, with innovation playing a pronounced driving role. Artificial intelligence is booming; digital empowerment is accelerating; and related industries are growing rapidly. In August, the added value of intelligent onboard equipment manufacturing as well as the manufacturing of electronic components and equipment increased by 17.7% and 13.1% respectively. The added value of integrated circuit manufacturing increased by 23.5%. The process of industrial upgrading has maintained positive momentum, with rapid growth in equipment manufacturing and high-tech manufacturing industries. In August, the value added of the equipment manufacturing industry and high-tech manufacturing industry above the designated size increased by 8.1% and 9.3% year on year, respectively, growing significantly faster than the overall industrial enterprises above the designated size. The modern service industry showed robust growth momentum, with the index of service production (ISP) for information transmission, software and IT services, and for leasing and business services growing by 12.1% and 7.4% year on year. The green transformation has been steadily advanced, with the output of new energy vehicles increasing by 22.7% and lithium-ion power batteries for vehicles increasing by 44.2% in August. The results of trade diversification continue to show, with China's imports and exports from the "Belt and Road" partner countries increasing by 5.4% from January to August, outpacing the overall growth rate of foreign trade.

Overall, the economy performed steadily in August with high-quality development making solid progress. However, it should also be noted the external environment is complex and severe, with many destabilizing factors and uncertainties. In the domestic market, there is strong supply but weak demand, and some enterprises are facing difficulties in their operations. In the next stage, we will fully implement the decisions and arrangements of the CPC Central Committee and the State Council, strengthen the regulation role of macroeconomic policies, effectively unleash the potential of domestic demand and deepen reform and opening-up. This will strengthen domestic circulation, promote the domestic and international dual circulation, fostering stable and sustainable economic development. Thank you.