China’s economy is still growing at a reasonable pace despite slowdowns in a batch of economic indicators in the third quarter, which show the economy is undergoing a fundamental structure change and that emerging industries are growing rapidly in spite of the depression in some traditional industries.
The value-added high-tech industrial output expanded 10.4 percent year-on-year in the first seven months, 4.1 percentage points higher than the whole second industry, data from the National Bureau of Statistics (NBS) showed. The volume of products at the stage of transformation and upgrading grew substantially. For example, the production volume of new-energy vehicles was more than tripled, and that of CRH trains, smart televisions and smart phones grew by 104 percent, 47.1 percent and 31.7 percent, respectively, in July.
The tertiary industry was a bright spot in the economy. The value-added industrial output accounted for 50 percent of the country’s GDP, 5.8 percentage points more than that of the second industry.
Consumption accounted for 60 percent of China’s GDP growth in the first half of this year, an increase of 5.6 percentage points year on year. In August, retail sales of consumer goods increased 10.8 percent year on year, official data showed.
Although development slowed down in metallurgy, nonferrous metals, chemical engineering, building materials, machinery and electricity, the value-added industrial output of these industries accounts for only about 20 percent of GDP growth.
China has made great efforts to promote the development of emerging industries such as e-commerce, information, medicine and logistics, said Wang Yiming, deputy director of the Development Research Center of the State Council. The new economic growth engines in these fields will become strong forces to bolster economic growth, he added.
Wang also said that a number of enterprises have adopted new models and technologies to create more profits in the competing market. China has full confidence to meet all challenges in economic development, he said.
China has launched the “Internet Plus” action plan to promote the development of emerging industries and the “Made in China 2025” action plan to enhance competitiveness in traditional industries. Reforms are being increased to tackle problems and prevent risks from both home and abroad in all sectors.
During the new normal state of the economy full of challenges, we should keep economic growth within a reasonable range and further promote reforms in finance, taxation and State-owned enterprises, said Hu Jiayong, a researcher at the Chinese Academy of Social Sciences.
NBS data showed that China’s economy grew by 6.9 percent in the third quarter.