electra-supply.comDuring a press conference in Beijing on October 8, Zheng Zhajie, head of China’s National Development and Reform Commission, offered an overview of the current economic conditions, emphasizing that the essential factors and strengths underpinning China’s economic development remain intact. He expressed strong confidence in the country’s ability to meet its economic and social development objectives for the year.
Zheng acknowledged the increasingly complex domestic and international challenges but stated that China’s economy is generally performing well, with steady advancements being made. He mentioned the rapid emergence of new productive forces, the strengthening of initiatives to safeguard citizens’ livelihoods, and notable progress in risk prevention and management across critical areas. High-quality development is also on the rise, contributing to a stable overall social landscape.
He distilled the current situation into two key themes: “stability” and “progress.” “Stability” is evident in the economic performance metrics. He reported that industrial output has surged, with large-scale enterprises experiencing a 5.8% year-on-year growth in industrial added value during the first eight months of the year. Sectors such as new energy vehicles and integrated circuits have witnessed impressive production increases of 31.3% and 26.6%, respectively. On the demand side, both investment and consumption are climbing, highlighted by a 9.1% growth in manufacturing investment—an important driver of sustainable development— which surpassed the overall investment growth rate of 5.7%. Moreover, sales of automobiles and home appliances have rebounded considerably, with major passenger car retailers anticipating a 10% sales increase in September compared to August.
Turning to the theme of “progress,” Zheng pointed out the ongoing structural optimization within the economy. He noted that new growth engines are developing rapidly, with values in high-tech manufacturing and equipment manufacturing rising by 8.9% and 7.6%, respectively, in the first eight months. The structure of the major demand components is becoming more optimized, alongside significant advancements in areas like new urbanization and coordinated regional development, with key economic provinces effectively fulfilling their roles.
However, Zheng was candid about the challenges ahead. He acknowledged the increasingly complex external environment characterized by weakened growth in major economies and heavy debt burdens. Recent widespread interest rate cuts, noticeable fluctuations in international markets, rising global trade protectionism, and a growing number of uncertainties could negatively affect China through trade, investment, and financial channels. Additionally, domestic economic pressures are mounting.
In conclusion, Zheng reiterated that a thorough analysis reveals that the fundamentals of China’s economic development remain unchanged. The market potential and economic resilience are strong. As the effects of existing policies continue to manifest, along with the implementation of new measures, market expectations have notably improved, evidenced by a significant rebound in the manufacturing Purchasing Managers’ Index (PMI) and a recovering stock market. Consumer spending during the recent “Golden Week” holiday was also a highlight. “We are confident in achieving our economic and social development goals for the year and in maintaining sustainable, healthy economic growth,” he affirmed.
