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Manufacturing, consumption drive economic recovery

By Ma Qing | chinadaily.com.cn | Updated: 2024-06-06 15:57

A staff member works in the hydrogen storage equipment production workshop at Jiangsu Guofu Hydrogen Energy Equipment Co Ltd in Zhangjiagang, Jiangsu province, May 31, 2024. [Photo/Xinhua]

China's economy is witnessing an upward trajectory, driven by the momentum in its manufacturing sector and the increasing potential of the consumer market, People's Daily reported on Wednesday.

Data from the National Bureau of Statistics showed that major industrial enterprises have generated 2.09 trillion yuan ($288.44 billion) in total profits in the first four months of this year, a 4.3 percent year-on-year increase, while retail sales of consumer goods rose by 2.3 percent to 3.57 trillion yuan in April.

Analysts said that China's growth gains new momentum and advantages as industrial production has exceeded expectations, and demand for services and consumption continues to grow. With the emergence of new industries, products and business models, innovation will play a major role, further expanding the space for economic growth.

China has accelerated its industrialization and its transition to "Intelligent Manufacturing in China" has been on a fast track in recent years. Data from the China Machinery Industry Federation showed that from January to April, of the 122 key machinery products monitored, 56 percent recorded year-on-year production growth.

Local authorities' efforts to update large-scale equipment and implement consumption upgrading plans are driving up demand for manufacturing, leading to more stable industry performance, a CMIF spokesperson said.

With the rapid development of 5G, big data and AI technologies, local governments have implemented policies to accelerate the digital transformation and intelligent upgrading of the manufacturing industry.

Jiangxi province builds digital pilot enterprises and small lighthouse factories, while Anhui province encourages industrial enterprises to use 5G networks for internal and external network transformation.

With strong policy support for equipment updates, the intelligent and green development of manufacturing is steadily advancing, said Liu Aihua, spokeswoman for the National Bureau of Statistics.

It is necessary to coordinate efforts to stabilize growth, boost resilience and mitigate risks. This will help enhance economic recovery and promote quality improvement and reasonable growth, she said.

In April, China's retail sales of goods grew by 2.0 percent on a yearly basis, with rapid growth in sales of upgraded products. Sales of new energy vehicles surged by 33.5 percent year-on-year, accounting for 36 percent of new car sales, data from the Ministry of Commerce showed.

Fueled by policies to boost domestic demand and consumption, regions across China are expanding consumption scenarios and optimize consumption environment. Cultural and tourism consumption, digital platforms and health-related industries saw growth, a positive trend in consumer behavior.

Various consumption trends, from winter tourism to holiday spending, are driving the recovery of China's consumer market. With the emergence of new consumption patterns and supportive policies encouraging product replacement, the potential of the market is set to keep growing, Liu added.

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