On October 23rd, the State Council Information Office held a press conference to discuss the development of industrial and information technology in the first three quarters of 2024. Zhao Zhiguo, a spokesperson and chief engineer of the Ministry of Industry and Information Technology (MIIT), shared some key insights during the event. He revealed that the value-added industrial output of large-scale enterprises increased by 5.8% year-on-year, with the total industrial output accounting for 31.8% of the country’s Gross Domestic Product (GDP).

Zhao outlined three main characteristics of the industrial economy’s performance in the first three quarters:

Firstly, industrial production has seen steady growth. The MIIT has been proactive in implementing policies, resulting in the aforementioned 5.8% year-on-year growth in industrial value-added output, which constitutes a significant portion of the GDP.

Secondly, key industries and regions have made notable contributions to this growth. The MIIT has been implementing a plan to stabilize growth across ten major industries, with significant support from leading industrial provinces and cities. Notably, four sectors—electronics, non-ferrous metals, chemicals, and automotive—account for nearly half of the industrial production growth. Furthermore, nine industrial provinces have outpaced the national average growth rate, with cities like Zhengzhou, Shaoxing, Wenzhou, and Hefei achieving double-digit increases.

Thirdly, there has been a continuous accumulation of growth momentum. The MIIT has focused on upgrading industrial equipment and promoting technological transformation, leading to a 16.4% year-on-year increase in investment in machinery and equipment. Products with high technological content, such as AI chips and servers, have also experienced significant production growth.

Looking ahead, Zhao emphasized that the MIIT will continue to implement the decisions made by the central government, concentrating on accelerating the new type of industrialization. The ministry aims to enhance growth stability, expand demand, increase momentum, and improve the overall environment.

To stabilize the foundational aspects of the industry, the MIIT will further implement the ten major industries’ growth stabilization plans, supporting key industrial provinces and cities in consolidating their advantages. The ministry will also assist northeastern and central-western provinces in successfully engaging in industrial transfer activities to enhance their capacity for regional coordination and development.

In terms of expanding effective demand, efforts will be made to promote major projects outlined in the 14th Five-Year Plan, particularly in the physical work sector. This includes boosting consumer demand for smart home appliances and accelerating the implementation of trade-in policies for automobiles and electric bicycles, alongside initiatives to promote new energy vehicles in rural areas, all aimed at unleashing market potential.

To enhance development momentum, the MIIT plans to implement significant technological upgrades in manufacturing and large-scale equipment renovations, while promoting digital transformation in the sector. Actions to improve the quality of key industrial chains, along with national science and technology initiatives and major research projects, will be advanced, aiming for more significant achievements. The ministry is also looking into policies to enhance the technological innovation capabilities within industries, fostering deep integration between technological advancements and industrial innovation. Emerging sectors such as low-altitude economy, commercial spaceflight, and biomanufacturing will be cultivated and expanded.

Lastly, to optimize the development environment, the MIIT will continue efforts to reduce business costs and provide targeted support for small and medium-sized enterprises. Strengthening industry guidance, enhancing standard quality leading practices, and actively preventing destructive competition are among the key actions planned. There will be ongoing improvements in communication mechanisms for businesses to resolve their issues and bolster their confidence in development.