Posted on 24 Feb 2022
Industry is a pillar of China's national economy and the engine for its economic growth, and its steady growth and upgrading, thus, will be the cornerstone of China's economy, the Ministry of Industry and Information Technology (MIIT) reiterated the paramount role of industry in China's economy, thus justifying Beijing's move to ascertain the growth in the country's industry in 2022, according to a MIIT post on February 23.
The post was five days after the notice by the National Development and Reform Commission NDRC) about the detailed measures that China' 12 top-level ministries including MIIT will implement to achieve the industrial growth, and this is yet another post from top-level ministries, reiterating the importance of a continuing industrial growth, Mysteel Global noted.
For 2020-2021, industry's contribution to China's gross domestic output (GDP) growth held steadily at about 36.5%, up 9.6 percentage point from that for 2019 and acting as a crucial force supporting the consistent recovery in China's economy, MIIT elaborated.
A steady growth in industry and national economy will be crucial for a good start of the 14th Five-Year Plan period (2021-2025) as well as the continuation of consistent recovery in China's economy in 2021, the ministry commented.
For 2021, China's sizeable industrial enterprises posted a 9.6% on-year gain in their added value with the monthly growths over October-December at 3.5%, 3.8% and 4.3% on year respectively, and their business environment also improved towards the end of last year, as their raw materials procurement costs declined on the softening in the prices of bulk commodities including coal, MIIT elaborated.
On the other hand, China's economy is facing more multi-dimensional challenges and pressure from both in and out of the country with the remaining uncertainties in the COVID-19 pandemic, the spreading inflation and the continuing hiccups in the supply chain in the global environment and the possible shrinking in consumption and investment and persistently high bulk commodities prices internally, MIIT listed a few adverse factors.
Besides, China's exports of manufactured goods may not be as robust as last year either, which will propel the domestic industrial enterprises to explore domestic market potentials, it added.
Beijing is keenly aware of the growing challenges for its economic development for 2022, and it has been taking a series of efforts ever since the start of 2022 including stabilizing the supplies and prices of bulk commodities including coal and iron ore, financially aiding the domestic medium-, small-, and micro-sized enterprises, bringing forward some infrastructure construction projects, and requesting related governing bodies to issue measures to boost domestic consumption, all to fend off the adverse impact, as reported.
Beijing will commence its "Two Sessions" on March 4 and March 5 respectively which are to finalize the country's economic development targets including GDP growth.
Source:Mysteel Global
