As China approaches the 75th anniversary of the founding of the People’s Republic in 2024, the nation is marking significant milestones in its economic journey. The first three quarters of this year have showcased China’s resilience and steady advancement toward high-quality development, even amidst a complex international landscape.
Robust Industrial Growth Fuels Economy
On the production front, China’s industrial sector has demonstrated remarkable strength. Profits of industrial enterprises have continued to rise since the beginning of the year, with high-tech manufacturing industries leading the way. These sectors have become new growth drivers, propelling the steady progression of the economy.
According to the latest data from the National Bureau of Statistics (NBS), industrial enterprises above the designated size achieved operating revenue of 87.1 trillion yuan (approximately $12.3 trillion) from January to August, marking a 2.4 percent year-on-year increase. Notably, the computer, communications, and other electronic equipment manufacturing sectors saw profits surge by 22.1 percent. This significant growth underscores the ongoing optimization of China’s industrial structure and its focus on innovation-driven development.
The manufacturing Purchasing Managers’ Index (PMI) for September rose to 51.2, surpassing the critical threshold and indicating expansion. High-tech manufacturing PMI and equipment manufacturing PMI stood at 53.0 and 52.0 respectively, reflecting continued positive momentum in these key sectors.
Consumer Confidence on the Rise
On the consumption side, domestic demand is showing signs of steady recovery. Certain consumer sectors have entered a period of seasonal growth, bolstered by policies aimed at boosting domestic demand, such as large-scale equipment upgrades and trade-in programs for consumer goods.
From January to August, profits in the consumer goods manufacturing sector rose by 8.4 percent year-on-year, outpacing the average growth in manufacturing. The consumer confidence index improved slightly, increasing from 90.1 in June to 91.3 in September, according to the NBS. The expectation index, reflecting consumers’ views on economic prospects, climbed from 88.7 in June to 90.1 in September. These indicators highlight that domestic consumption remains a cornerstone for economic growth.
Price Levels Show Positive Trends
Overall domestic price levels have shown signs of rebound. The Consumer Price Index (CPI) rose by 0.4 percent year-on-year in September and remained stable month-on-month. Price trends have become clearer, influenced by improved expectations for industrial goods demand and seasonal consumption patterns of agricultural products. Meanwhile, the Producer Price Index (PPI) experienced declines both month-on-month and year-on-year, impacted by factors such as the decline in international commodity prices.
Resilience Amidst Global Uncertainties
Other economic indicators—including fixed asset investment, foreign trade, and the urban unemployment rate—have improved to varying degrees. These developments highlight the resilience of China’s economy and its commitment to recovery and long-term growth.
As the external environment grows increasingly complex and uncertain, China recognizes the importance of overcoming challenges to maintain economic growth. Looking ahead, efforts will focus on actively expanding effective domestic demand, accelerating the cultivation of new economic drivers, and improving household income levels.
Intensifying monetary policy regulation and enhancing coordination between monetary and fiscal policies are imperative. Implementing various reform tasks and measures will further solidify the foundation for sustained economic recovery and improvement.
China’s steady economic performance in the face of global headwinds reflects its strategic approach to development and its ability to adapt and innovate. As the country moves forward, it continues to play a pivotal role in the global economic landscape.
Reference(s):
cgtn.com
