SCIO briefing on China's economic performance in May 2025

21st Century Business Herald:

How did industrial enterprises above designated size perform in May? What were the main characteristics? How do you evaluate the future development trend of China's industrial production? Thank you.

Fu Linghui:

Thank you for your questions. Driven by the effective implementation of macroeconomic policies and industrial upgrading, the valueadded output of industrial enterprises above designated size increased 5.8% year on year in May. Industrial production maintained steady and rapid growth, demonstrating strong resilience and growth potential. The steady advancement of high-end, intelligent and green industrial development has fueled high-quality economic growth.

First, the industrial sector's move toward high-end development has progressed steadily. In recent years, as companies have strengthened their technological capabilities and financial resources, there has been a clear shift in industrial production toward medium- and high-end, technology- and capital-intensive sectors. In May, the value-added output of equipment manufacturing and high-tech manufacturing enterprises above designated size increased 9% and 8.6% year on year, respectively, both continuing to grow faster than the overall industrial sector above designated size. By industry, key equipment manufacturing industries grew rapidly in May, with the value added by automobile manufacturing up 11.6% and by computers, communication and other electronic equipment manufacturing up 10.2%. By product, high-tech product output grew rapidly in May, with 3D printing equipment production up 40% and integrated circuits up 11.5%.

Second, the development of industrial intelligence has accelerated. The integration and penetration of the digital economy have continued to increase, further strengthening its role in driving industrial production. In May, the value added by the digital product manufacturing industry grew 9.1%, significantly outpacing the growth rate of all industrial enterprises above designated size. The integration of technological innovation and industrial innovation is accelerating, and demand for intelligent products is expanding significantly, driving rapid growth in production. In May, the value added by intelligent unmanned aerial vehicle manufacturing rose 85.9%, while in-vehicle smart device manufacturing increased 29.5%. The output of robot reducers doubled, while the output of industrial robots increased 35.5%.

Third, green industrial production has made significant progress. With the green transformation of the economy and society, demand for new energy products and green materials has continued to grow. Coupled with improved innovation capabilities among enterprises, the supply of green products is also expanding. In May, the output of NEVs and automotive lithium-ion power batteries rose 31.7% and 52.5%, respectively, while the supply of new green materials also increased. The output of high-performance chemical fibers, bio-based chemical fibers, and carbon fibers and their composite materials climbed 92.2%, 21.5% and 17.9%, respectively.

Fourth, business revenue expectations have improved. Since the beginning of this year, the economy has remained generally stable, creating favorable conditions for enterprises to improve their business performance. From January to April, the profits of industrial enterprises above designated size increased 1.4% year on year, while the profits of manufacturing enterprises increased 8.6%. As the effects of macroeconomic policies have become apparent, business expectations for production and operations have improved. In May, the manufacturing PMI rose 0.5 percentage point from the previous month. Among them, the production index was 50.7%, up 0.9 percentage point from the previous month, while the production and business expectations index reached 52.5%, up 0.4 percentage point.

Overall, industrial production grew steadily in May, with new growth drivers continuing to emerge and demonstrating strong momentum. However, it should also be noted that the external environment is complex and severe, and industrial product prices are at a low level. The industry still faces pressure to maintain steady growth. Looking ahead, we will implement various policies to support industrial development, actively expand domestic demand, vigorously cultivate new quality productive forces, and optimize and adjust the industrial structure. We will also advance the transformation and upgrading of traditional industries to promote the sustainable and healthy development of industry. Thank you.