Nikkei:

Industrial production has slowed down for two straight months. Besides the weather factor, is there any other reason in your view? Some local governments are currently strengthening their regulations on environmental protection, so how does that impact industrial production?

Liu Aihua:

First, industrial production may indeed have slowed down, but it still maintained steady growth. From January to August, the added value of industrial enterprises with annual revenue of at least 20 million yuan from their main business operations increased by 6.7 percent year-on-year, up 0.7 percentage point. Industrial production grew by 0.46 percent in August, up 0.05 percentage point from July.

Second, due to the hot and rainy days, industrial production in July and August did see a slowdown. However, this slowdown is also related to structural adjustment. The added value of industries with extensive energy consumption grew by 2.9 percent, 0.4 percentage point less than the previous month. Meanwhile, other industries that have speeded up their transformation and upgrading managed to raise their production. The added value of manufacturing industries rose by 6.9 percent, high-tech industries rose by 12.9 percent, and equipment manufacturing industries grew by 11.6 percent, respectively 0.2, 0.8 and 0.9 percentage point higher than the previous month.

The productive activities of industries with extensive energy consumption has slowed down, but, on the whole, we were able to speed up transformation and upgrading. Therefore, it shows we are following the new vision of development, which will not only boost short-term economic development but also give sustainable and fresh impetus to medium and long-term development. Thank you.

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