Government to push for stability of manufacturing sector
Published: Nov 21, 2022 08:42 PM
The manufacturing line of a NEV factory in Southwest China's Chongqing Municipality Photo: VCG

The manufacturing line of a NEV factory in Southwest China's Chongqing Municipality Photo: VCG

Ministry of Industry and Information Technology (MIIT), along with two other ministries, jointly issued a notice on Monday, aiming to consolidate industrial production, to be bolstered with a spate of new supportive measures.

The notice, in line with measures unveiled on the heels of the tone-setting 20th National Congress of the Communist Party of China (CPC), shows that Chinese policymakers are seizing the "window of opportunity" to maintain the world's second-largest economy to grow within a reasonable range this year, observers said. 

The notice meted out 17 measures to shore up development of major industries, varied enterprises and different regions in China.

The boost will be broad-based with a particular focus on manufacturing, which indicates the policymakers want to consolidate the upward growing trend of the economy, and plan more stimulus measures to create new growth points, Cong Yi, dean of the School of Marxism at Tianjin University of Finance and Economics, told the Global Times on Monday.

And, to stabilize exports, the notice vows to solidify the whole foreign trade chain, and guide localities to establish a service guarantee system for leading foreign trade enterprises and help them to solve problems in a timely manner. 

The circular also called for more support to shore up transportation of new-energy vehicles and electric batteries through the China-Europe Railway Express.

To motivate the localities to get on the fast track and push forward the recovery of the world's second-largest economy, the notice calls on the country's eastern relatively developed provinces take the initiative to play a key supporting role in stabilizing the economy, while asking the central and western regions to build on their growth momentum.

"The new measures are full-fledged, covering both macro and micro measures. They will ramp up domestic economy circulation and market confidence, further cementing the economy's rebounding trend," Hu Qimu, deputy secretary general of digital-real economies integration forum 50, told the Global Times on Monday.

The notice said that China should ensure its industries to operate in the reasonable range in the fourth quarter, and the manufacturing sector keep up stable growth. Industrial development is the main driver of economic growth, and boosting manufacturing is the solid base for stabilizing the economy, the notice reads. 

In October, the Chinese economy maintained growth momentum despite epidemic disruptions. In particular, the growth of industries was led by high-tech manufacturing, equipment building and other production, data from the National Bureau of Statistics (NBS) showed. 

In October, China's industrial value-added achieved year-on-year growth of 5 percent. High-tech manufacturing value-added grew 10.6 percent year-on-year.

The notice also stresses the significance of "supply assurance and collaborative reserves" in key raw materials, key software, and core components, vowing to coordinate the promotion and application of automotive chips, technological breakthroughs and production capacity improvement.

China will continue to expand car consumption by measures like extending purchase tax exemptions on NEVs and starting full electrification of public vehicles in pilot cities, the notice said.

"Another highlight of the recent economic indicators was exports and sales of new-energy vehicles. This is particularly enlightening against the fallout of epidemic flare-ups. It underscores an ongoing manufacturing transformation and upgrading trend, which the government has been taking note of, and it is unveiling new measures to maintain the momentum," Cong said. 

In October, the production of NEVs and charging piles grew 84.8 percent and 81.4 percent, respectively, NBS data showed.