The recent press conference held by China's State Council Information Office on January 21, 2024, highlighted significant developments in the country's industrial economy amid ongoing pressuresZhang Yunming, the Deputy Minister of Industry and Information Technology, presented an optimistic outlook, outlining projections for the year aheadEmphasizing resilience, he noted that despite facing both external and internal challenges, the overall economic environment is expected to remain stable while continuing to progress.

According to Zhang, China's industrial value added at a significant scale is predicted to grow by 5.8% year-on-year in 2024, marking a 1.2-point increase from the previous yearThis growth translates into an industrial value of approximately 40.5 trillion yuan, which underscores China's position as the world's dominant manufacturing powerhouse, a title it has retained for 15 consecutive years.

Looking ahead, the Ministry of Industry and Information Technology (MIIT) is committed to implementing policies designed to support both existing and new growth initiatives within the industrial sector

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Zhang highlighted the intention to formulate mechanisms that ensure appropriate investment levels in manufacturing, thereby fostering a conducive environment for sustainable growth.

As part of broader efforts, various industry-specific growth policies are currently under considerationDuring the conference, MIIT officials responded to inquiries regarding the nurturing of digital industries, with plans to introduce documents that promote high-quality advancements in this sectorThe ministry seeks to catalyze the next wave of technological innovations through initiatives such as the deployment of 10-Gigabit optical networks and increased investments for the evolution of 5G and 6G technologiesIn the rapidly growing electric vehicle sector, there are strategies aimed at enhancing battery-swapping models and restructuring automotive enterprises to optimize the industry ecosystem.

To stimulate growth in primary industries and regions, the MIIT intends to roll out a new set of plans targeting ten key industrial categories

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This initiative is paired with intensified support for affluent provinces and municipalities, aimed at facilitating the development of regional industries that capitalize on local strengthsAdditionally, a focus on expanding effective demand is a priority, as the ministry seeks to devise policies that ensure a healthy distribution of manufacturing investments.

In terms of investment figures, projections indicate that manufacturing investments for 2024 will increase by 9.2% compared to the previous yearThis growth is especially noteworthy given that extensive equipment upgrades and recycling programs are currently being promoted, leading to significant increases in the acquisition of machinery and tools—expected to rise by 15.7% annually, thereby boosting overall investment growth by 2.2 percentage points.

Furthermore, the digital economy is set to play a crucial role in the industrial landscape

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It encompasses telecommunications, electronic information manufacturing, software services, and internet services, representing a new frontier of productive capacityNotably, between January and November 2024, China's digital industry is projected to yield revenues of 31.7 trillion yuan, reflecting a year-on-year growth rate of 5.4%, a modest improvement over the previous year's figures.

In this vein, Tao Qing, the Director of the Operation Monitoring and Coordination Bureau within the MIIT, elaborated on future strategies to bolster the digital sectorThis includes enhancing policy support and resource allocation, establishing robust monitoring frameworks, and fostering synergistic relationships between industrial, financial, and regulatory policiesSuch measures are anticipated to cultivate internationally competitive digital industrial clusters, reinforcing the foundations of China's digital economy.

On another front, Zhang Yunming called attention to the need for deeper cooperation between industries and financial sectors

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By leveraging the roles of industrial investment funds and national platforms for industry-finance collaboration, the MIIT aims to reduce the financial burdens on enterprises while facilitating the construction of a unified national marketThis involves strategic mergers and acquisitions, with a particular focus on strengthening high-quality enterprises.

In a world where technological innovation is vital for economic success, China has made significant strides in nurturing specialized and innovative small and medium-sized enterprises (SMEs). As of now, the country has cultivated approximately 14,600 ‘little giants’—SMEs particularly distinguished for their expertise and innovation capabilitiesCollectively, these firms have an average R&D intensity of 7%, and despite representing only 3.2% of the total number of SMEs in China's industrial sector, they account for an impressive 10.9% of total profits.

In pursuit of bolstering support for SMEs, the MIIT is poised to expedite the revision of regulations governing payments owed to these businesses