In the first half of 2016, China's industrial economy was generally stable.

On the afternoon of July 25, 2016, the State Council Information Office held a press conference in the Press Room of the State Council Information Office, inviting Vice Minister of Industry and Information Technology Feng Fei to introduce the development of the industrial communications industry in the first half of 2016 and answer questions from reporters. Also attending the conference were Wen Ku, Director of the Information and Communication Development Department of the Ministry of Industry and Information Technology, and Huang Libin, Deputy Director of the Operation Monitoring and Coordination Bureau.
Feng Fei, deputy director of the Ministry of Industry and Information Technology, first briefly introduced the development of the industrial communications industry in the first half of this year. He said that since the beginning of this year, the national industrial and information system has conscientiously implemented a series of decision-making arrangements of the Party Central Committee and the State Council, adhered to the general tone of steady progress, and made every effort to promote stable industrial growth, adjust structure, increase efficiency, and focus on strengthening the supply-side structure. Sexual reforms, in-depth promotion of China Manufacturing 2025 and "Internet +" actions, all aspects of the work have made positive progress, the industrial economy is generally stable, and the information and communication industry is developing steadily.
Feng Fei analyzed in detail the characteristics of the industrial situation in the first half of the year:
-- The growth rate of industrial production has gradually stabilized. In the first half of the year, the added value of industrial enterprises above designated size increased by 6% year-on-year, including 5.8% in the first quarter and 6.1% in the second quarter. Among the 41 industrial large-scale industries, 19 industries have increased value-added faster than the first quarter, and these industries are mainly concentrated in manufacturing.
——The improvement of the efficiency of industrial enterprises. From January to May, the income from the main business of industrial enterprises above designated size rose by 0.5 percentage points from the first quarter, and the profit increased by 6.4%, which changed the state of sustained negative growth last year. Among the 41 major industrial sectors, the total profit of 33 industries increased or remained flat.
-- The effect of supply-side structural reform policies in the industrial sector has initially emerged. In terms of capacity, the steel industry has dismantled excess capacity into a new phase of accelerated implementation. In the first half of the year, crude steel output fell by 1.1% year-on-year, and the steel industry's operating conditions improved. In terms of cost reduction, the company reduced the interest rate and tax reduction by lowering the rate, and reduced the cost. The cost per 100 yuan of the main business income of industrial enterprises above designated size in the first five months was the lowest in the same period in three years. In terms of short-boarding, the implementation of manufacturing technology upgrading and upgrading projects, industrial strong foundation projects, green manufacturing projects, major innovation projects for big data, etc., promoted the transformation of manufacturing to medium and high-end and traditional industries, and the investment in technological transformation of industrial enterprises in the first half of the year. Increased by 14.5%.
——High-tech industries and fast-changing industries are performing well. In the first half of the year, the growth rate of added value of high-tech industries was 4.2 percentage points higher than the overall growth rate of the industry; the growth rate of added value of equipment manufacturing industry increased by 2.1 percentage points year-on-year. The light industry and the textile industry are actively adapting to changes in consumption and upgrading, focusing on increasing varieties, improving quality, creating brands, and the overall operation is stable.
-- The information and communication industry has grown steadily. In the first half of the year, revenue from basic telecommunications services increased by 5.6% year-on-year, and revenue from value-added telecommunications services increased by 18.6%. The proportion of fiber access users and mobile broadband users continues to increase. China's Internet industry has shown steady growth. The pace of construction of optical network cities is accelerating, and the increase of network speed has promoted the popularity of Internet applications and led users to increase information consumption. With the continuous advancement of "Internet +", applications and innovations based on mobile Internet, big data, cloud computing, and Internet of Things have become increasingly active, and new energy has been accumulated for economic development. In the first half of the year, software business revenue increased by 15.1% year-on-year.
Feng Fei said that on the whole, under the influence of a series of policies and measures to promote industrial stability in the central government, the industrial economy has shown a slow and stable operation. Most regions, industries and enterprises have improved their operational status, and policy effects continue to emerge. Positive factors have gradually gathered, and the adjustment of industrial structure has been steadily advanced, laying a good foundation for accomplishing the goals and tasks of the year.
Feng Fei also pointed out that in the next step, the Ministry of Industry and Information Technology will focus on the following aspects: First, efforts will be made to promote the steady growth of the industrial economy; second, unswervingly promote industrial upgrading and efficiency; third, focus on promoting supply-side structural reforms and de-capacity 4. Reduce costs and make up the shortcomings; Fourth, focus on dissolving excess capacity and help difficult industries to develop difficulties; Fifth, continue to promote broadband China.
In response to the reporter's first half-year operating characteristics and the second half of the year, Feng Fei said that the first half of this year's industrial operation was slow, stable, and difficult.
Feng Fei pointed out that the so-called slow-down stabilization is mainly manifested in three aspects: First, the growth rate of industrial added value above designated size is relatively stable. The growth of 6% in the first half of the year is basically consistent with the expected growth target proposed at the beginning of the year; There have been obvious improvements. Just now, from the fundamentals of industrial enterprises, the overall situation is not bad. The loss-making enterprises have a loss of 16.6%, which is the lowest level in the same period in five years. Third, the positive signs have increased significantly. The decline in the ex-factory price (PPI) continued to narrow, and the Manufacturing Purchasing Managers' Index (PMI) continued to rise above the glory line for four consecutive months. Feng Fei said that there are three aspects: stable high-tech manufacturing. The growth rate is accelerating, and the proportion of high-tech manufacturing technology manufacturing industry is gradually increasing, reaching 12.1%. Second, the pace of transformation and upgrading of traditional industries is accelerating, especially increasing varieties, improving quality, creating brands, and meeting consumption upgrades. The industry in the direction has generally developed relatively fast; the third is the initial emergence of the effect of de-capacity and short-board.
Referring to the "difficulty in entering China", Feng Fei believes that the so-called "difficult" is also reflected in three aspects:
First, the effective demand is generally weak. From the first half of the year, exports continued to be sluggish. In the first half of the year, the growth rate of investment declined, and the growth rate of investment in the industrial sector declined significantly. The growth rate was only 4.2%, and the growth rate of private investment was only 2.8%.
Second, there is a process for the conversion of old and new kinetic energy. I just mentioned that the high-tech manufacturing industry is developing rapidly, but its proportion is still relatively small. However, the transformation and upgrading of traditional industries and the repair of kinetic energy do require a relatively long process, which is long-term and arduous.
Third, some regions and industries are under downward pressure. For example, in the first half of the mining and metallurgical industries, the added value only increased by 0.1% and 2.1% respectively, which was significantly lower than that in the first quarter. Some resource-based provinces and areas with heavy chemical industry and relatively large industrial structure still face relatively large difficulties.
Feng Fei said at the press conference that in the second half of the year, we believe that there is still a lot of uncertainty in the industrial economy, so we must increase our policy efforts to maintain a good momentum of industrial stability. (Article source: According to the live broadcast content of the Ministry of Industry and Information Technology website on July 25, 2016)

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