BEIJING — China’s strategic emerging industries have seen rapid growth this year, with output expected to account for around 10 percent of GDP by year end, an official said on July 5.
In the first five months, income from primary businesses of key sectors within the industries went up 13.3 percent year on year, 1.8 percentage points faster than growth during the same period last year, said Fei Zhirong, deputy secretary-general of the National Development and Reform Commission.
Net profit increased 15.3 percent year on year, while profit margins in the industries also edged up slightly, indicating improved efficiency.
Specifically, profit margin in the new energy power generation industry reached 32.1 percent, well above the 8.1 percent average for such industries.
China has been encouraging the development of strategic emerging industries, which include sectors with high growth potential and rely on high-end technology.
According to a development plan for industries during the 13th Five-Year Plan period, output of the industries is expected to account for 15 percent of GDP by 2020.
China wants five new pillar industries each with output of 10 trillion yuan ($1.47 trillion): information technology, bio-industry, green and low-carbon industry, high-end manufacturing, and digital and creative industry.
While progress has been made, the industries also face many challenges, said Fei. Mechanisms and policies supporting the industries still need to be improved while the country’s innovation capability also needs to be advanced, he said.
Also, more talented workers, investments and protection for intellectual property right are needed, while imbalance in regional development needs to be addressed, Fei said.