China’s Ministry of Industry and Information Technology has recently reported significant growth in the country’s industrial sector for the year 2023. According to the Ministry, the annual added value of industries above designated size is expected to increase by 4.6% year-on-year, marking a 1 percentage point increase from 2022.
The manufacturing industry has been a major contributing factor to this growth, with its added value increasing by 5.0% year-on-year. This has helped to maintain China’s status as the world‘s leading manufacturing economy for the 14th consecutive year.
Key industries have also shown positive growth, with the average growth rate of the top ten key industries exceeding 5%. Electrical machinery equipment, automobiles, and traditional sectors such as steel, nonferrous metals, and petrochemicals have all seen significant improvements.
The industrial economy has also shown signs of recovery across most provinces, with industrial added value increasing year-on-year in many regions. Industrial fixed asset investment has seen a 9% year-on-year increase, with manufacturing investment accelerating since August 2023.
Corporate efficiency has been another positive aspect of the industrial sector, with operating income of industrial enterprises above designated size rebounding for five consecutive months. Profits have also achieved positive growth for four consecutive months, providing a strong foundation for companies to expand their investment in innovation and reproduction.
Market expectations have remained stable and are showing signs of improvement, with the number of industrial enterprises above designated size increasing to 483,000 by the end of November 2023. The expectation index for production and operation activities of manufacturing enterprises has also been on the rise, indicating a steady recovery in the confidence of manufacturing enterprises.
Overall, the report from the Ministry of Industry and Information Technology reflects a positive outlook for China’s industrial sector, pointing towards continued growth and stability in the coming year.