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SCIO briefing on China's economic performance in first 2 months of 2025

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The Poster News APP:

During this year's national "two sessions," scientific and technological innovation was undoubtedly a hot topic, with keywords such as new quality productive forces, AI Plus and low-altitude economy sparking heated discussions. Based on data from January and February, how has scientific and technological innovation driven the development of new quality productive forces? Thank you.

Fu Linghui:

Thank you for your question. As you mentioned, the development of new quality productive forces is indeed of great interest to all parties. The CPC Central Committee has attached great importance to cultivating and developing new quality productive forces. All localities and government departments have actively introduced measures supporting new quality productive forces, which continues to produce effects. Looking at the situation in the first two months, new breakthroughs have been made in scientific and technological innovation; new industries have developed well; the digital and green economies have continued to grow; and the transformation and upgrading of traditional industries has been steadily advanced. New progress has been made in the development of new quality productive forces.

First, emerging industries have maintained rapid growth. Emerging industries are an important engine for developing new quality productive forces. In the first two months, the value added of high-tech manufacturing increased by 9.1% year on year, 0.2 percentage point higher than last year. Domestic AI large language models have emerged, and innovative products such as AI Plus have developed rapidly, advancing the transformation of production methods and driving the rapid growth of high-end manufacturing. From January to February, the output of high-tech products such as IC wafers, industrial robots, electric multiple units (EMUs) and civilian drones increased by 19.6%, 27%, 64% and 91.5% year on year, respectively.

Second, the vitality of the digital economy has been continuously released. The digital economy is a focal point for developing new quality productive forces. All localities and government departments have accelerated their steps to advance both the digital transformation of traditional industries and the digital industry. The digital economy has maintained a good momentum of development. In terms of industries, in the first two months, the value added of digital product manufacturing enterprises above designated size increased by 9.1% year on year, and the production index of the information transmission, software and information technology service sectors increased by 9.3%. In terms of products, the output of smart products such as 3D printing equipment and virtual reality (VR) equipment increased by 30.2% and 37.7%, respectively. The large-scale application of 5G technology has been further promoted. During the Spring Festival, 5G mobile data consumption increased by 35% year on year, accounting for 60.9% of mobile internet data consumption.

Third, the green economy has created new growth drivers. Solid steps have been taken to advance the green transition, injecting new impetus into the development of new quality productive forces. In the first two months, wind and solar power generation by enterprises above designated size increased by 10.4% and 27.4% year on year, respectively; and the output of green products such as NEVs, lithium-ion power batteries for vehicles, and carbon fiber and its composite materials increased by 47.7%, 35.4% and 51.5%, respectively.

Fourth, industrial transformation and upgrading has been advancing steadily. The digital transformation and intelligent upgrading of industries has added new sources for the development of new quality productive forces. In the first two months, investment in the upgrading of manufacturing technologies increased by 10% year on year, 5.9 percentage points higher than the growth rate of total investment. At present, China has built more than 30,000 basic-level smart factories, more than 1,200 advanced-level smart factories, and more than 230 excellence-level smart factories, which will effectively empower industrial transformation and upgrading.

Overall, since the beginning of this year, new quality productive forces have grown and expanded and have sustained good development momentum. Next, we will make greater efforts to stimulate the vitality of traditional industries, accelerate the cultivation and development of emerging industries, and actively lay the groundwork for future industries and bolster the development of new quality productive forces to inject more new impetus into China's economic growth. Thank you.

Shou Xiaoli:

Thank you, Mr. Fu, and thank you to friends from the media for your participation. Today's briefing is hereby concluded. Goodbye.

Translated and edited by Yang Chuanli, Liao Jiaxin, Gong Yingchun, Wang Yanfang, Yan Xiaoqing, Xu Xiaoxuan, Yang Xi, Xu Kailin, Wang Wei, Fan Junmei, Liu Sitong, Li Huiru, Li Xiao, Zhang Junmian, David Ball, and Jay Birbeck. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

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