The State Council convened press conference
on the afternoon of 25th July, during which Feng Fei, deputy
minister of Ministry of Industry and Information Technology (MIIT), introduced the
development of the industry and communications in H1 2016. The year-on-year
growth of the industrial added value in national scale was 6% in H1, according
to Feng, the industrial economy run smoothly in H1, while from the perspective
of relation of market supply and demand, the steel industry has still been in
absolute excess.
Source: Internet
According to Feng Fei, the growth of
industrial production has gradually stabilized, and among the 6% of the
industrial added value in H1, 5.8% was increased in Q1 and 6.1% in Q2. In 41
industrial industries, 19 of which are mostly manufacturing industries, grew
faster in terms of industrial added value in Q1 than that of Q2.
The benefit of industrial enterprises has
improved. From January to May, the major business income of the enterprises
above designated size rebounded by 0.5 percentage point compared with that of
last quarter, among which the profit increased by 6.4% and thus changed the
situation of continuous negative growth in last year. And among all those 41
industrial divisions, 33 of which enjoyed an increased or flatted year-on-year
growth in terms of total profit.
Industries of high technology and
high-speed of transformation and upgrading was in a smooth operating situation.
In H1, the growth of high-tech industry was 4.2 percentage points higher than
the overall industrial growth, and the added value of the equipment
manufacturing industry increased by 2.1 percentage points YoY. Light industry
and textile industry, which enjoyed a smooth operating situation, have
positively developed more categories, improved products quality, and
established new brands so as to adapt to the changes from the consumption
upgrading.
Moreover, the effects of structural reform
of supply front in the industrial field began to emerge. In terms of the
de-capacity, the steel industry resolved the excess capacity and stepped into a
new phase to accelerate the implementation: the operating situation of the
steel industry has improved with the output of crude steel of H1 reduced by 1.1%
YoY; in terms of reducing cost, the cost of major business income of the
enterprises above designated size in the previous five months bottomed among
the past three years due to the reduction of the deposit reserve ratio and
interest rate, expenditure settling, and tax cut that promoted the
cost-reduction and profit-improvement of enterprises.
In terms of the remedy of short slab, the
technical transformation engineering of manufacturing industry, the foundation
reinforcing engineering of industry, green-manufacturing engineering, and
significant innovation engineering of big data have all contributed to the
industry transformation and upgrading
from the traditional industry with the growth of technology investment of 14.5%
in H1. Moreover, the communication industry has also realized smooth increase.
During the H1, the revenue of basic telecommunications business increased by
5.6% YoY, while the growth of the added value of communication business increased
18.6%.
Generally, the industrial economy presented
a stable running situation with the help of a series of policies released by
the central government, according to Feng Fei, the operating situation of most
areas, industries, and enterprises has improved with the effects of the
policies. The positive factors have gradually gathered and the adjustment over
industrial structure has been promoted steadily, and thus established a good
foundation for achieving the overall goals all around the year.
However, during the first half year,
industrial operating can be characterized by flat, stabilized, improved, but also
somewhat difficult. “Flat and stabilized” was presented by the stabilized
growth of the industrial added value of enterprises above designated size,
which basically corresponding to the expected growth target of 6% proposed in H1,
the obvious improvement of the profit of industrial enterprises, the continuous
narrowing of the decrease of Producer Price Index (PPI), the Purchasing
Managers Index (PMI) of manufacturing industry remained above the manufacturing
gauges for continuous four months, and more and more obviously positive
economic phenomenon.
“Stabilized and improved” was showed by the
accelerating growth of high-tech manufacturing industry (which has already
accounted for 12.1% of the manufacturing industry), the transformation and
upgrading of traditional industries, and the preliminary effects of de-capacity
and remedy of short slab.
“Improved and somewhat difficult” was
showed by the generally weak effective demand, since the export continued
downturn and the investment growth reduced (especially in the industrial field,
only had 4.2% of growth) during the H1, moreover, the growth of private
investment was only 2.8%. The complete conversion from the old kinetic energy
to the new remains to be further develop, and the downward pressure of some
areas and industries are relative huge.
Previously, the de-capacity of steel
industry has all the way been concerned by different social sectors. The No.6
Document issued by State Council confirmed that the industry would resolve the
excess capacity and thus to get out of the trouble of surplus and develop its
business with the goal of 140 million tonnes of capacity reduction in the next
five years, among which the target of this year is 45 million tonnes.
From the preliminary estimate, according
Feng Fei, the amount of de-capacity of steel industry in the H1 this year
amounted to 13 million tonnes, which accounted for about 30% of the overall
target this year. Generally, the major works of H1 is to deploy the tasks,
arrange the assignments, and formulate the relative policies, while during the
H2, it should focus on putting the plan into force and thus to substantially
propel the process of de-capacity.
“From the perspective of the relationship
of market supply and demand, the steel industry has still been in the absolute
excess, rather than relative overcapacity,” said Feng Fei, “and thus we should unswervingly
carry forward the de-capacity. As for the present progress and the measures we
have taken, we’ve already given the specific introduction.”
*This
article is edited and translated by CCM. The original one comes from Jiemian.com.
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