Chinese industrial production up 3.9%
China’s industrial production, an important economic indicator, continued to rise in June, rising 3.9 percent year on year, helped by a rebound in the auto industry, data from the National Bureau of Statistics showed on Friday.
But “continuous efforts” are still needed to build resilience in industrial and supply chains to ensure a lasting stabilization of the industrial economy, industry experts said.
SNB data showed industrial production in June was 0.84% higher than in May. Total industrial production in the first half of this year also rose 3.4% year-on-year. Among the 41 major industries, output growth for 27 industries rebounded in June from May. In particular, output in the equipment manufacturing industry rose 9.2 percent year-on-year during the period, up 8.1 percentage points from May.
“The growth of the equipment manufacturing industry, especially the automotive industry, has played a leading role in accelerating overall industrial growth,” said Fu Linghui, spokesperson for the NBS, during a Friday media briefing.
Auto industry output rose 16.2% year-on-year in June.
New auto sales soared nearly 24% year-on-year to 2.5 million units in June, according to the China Association of Automobile Manufacturers.
“Affected by the negative impact of the COVID-19 pandemic, the automotive industry chain in the Yangtze River Delta region has been affected to some extent. With the gradual recovery of Shanghai and other cities and regions to normal life, the production of the automotive industry has accelerated,” Fu said.
Wen Bin, chief economist at China Minsheng Bank, said the rebound in infrastructure investment, still-resilient exports and slowing sales declines in consumer and real estate markets also contributed to accelerate the resumption of industrial production.
However, Fu Baozong, a professor at the Academy of Macroeconomic Research, which is part of the National Development and Reform Commission, said the foundations for stable growth of the industrial economy were not yet solid and that continuous efforts should be made to improve the resilience of industrial and supply chains.
Since June, several ministries have organized intensive symposia to better face the industrial challenges of the second half of this year. The NDRC held a video symposium with experts on the economic situation on June 23-24. The Ministry of Industry and Information Technology also held successive symposia with industry experts, industry associations, key enterprises, and small and medium enterprises in late June.
“Additional efforts are still needed to smooth the movement of products, logistics, people and capital, which are crucial for the industrial chain. Currently, some key enterprises in the industrial chain are still facing the risk of exiting the chain due to the negative impact of the COVID-19 epidemic,” Fu said.
“Also, it is urgent to accelerate the exchange and mutual recognition of circulation policies between regions amid the epidemic, so as to ensure the smooth flow of goods. For businesses that have been heavily affected by the outbreak, the government should continue to provide timely support, such as tax cuts and exemptions. »