On May 22, the National Development and Reform Commission (NDRC) held a monthly press conference, where officials addressed public concerns regarding macroeconomic trends, price movements, and energy supply security in April. Li Chao, Deputy Director of the NDRC's Policy Research Office and spokesperson, stated that the NDRC will accelerate the implementation of policies to stabilize employment, enterprises, markets, and expectations. It will enhance economic monitoring, forecasting, and early warning systems, continuously refine its policy toolkit, and strive for a strong start to the 15th Five-Year Plan period.
The trend of stable economic operation remains unchanged. Li Chao noted that since the beginning of the year, the Chinese economy has started strongly, demonstrating robust vitality and resilience. While some economic indicators showed fluctuations in April, this was influenced by factors such as increased external uncertainties and rising geopolitical risks, as well as the continued prominence of domestic supply-demand imbalances. Overall, the fundamental trend of China's economy maintaining stable operation and progressing towards new, high-quality development remains intact, characterized by three prominent features.
First, the growth of new drivers is accelerating. China's high-tech manufacturing sector has seen rapid growth in value-added, investment, exports, and profits. From January to April, the value-added of high-tech manufacturing enterprises above designated size increased by 12.6% year-on-year. Investment in high-tech industries grew by 6.1%, with the manufacturing of aircraft, spacecraft, and related equipment, manufacturing of computers and office equipment, and information services investment rising by 17.9%, 13.9%, and 18.1% respectively. Exports of high-tech products increased by 27.6%, accounting for 27.9% of total exports.
Second, market efficiency is improving. Ongoing efforts to manage capacity and address "internal competition" in key industries are yielding results. Li Chao explained that improving supply-demand dynamics and stabilizing prices in some sectors are boosting corporate profits and market sentiment. In the first quarter, profits of industrial enterprises above designated size grew by 15.5% year-on-year, with high-tech manufacturing profits surging by 47.4%.
Third, the foreign trade structure is being optimized. Amidst an unstable international environment, China leverages its comprehensive industrial system to continuously enhance product and service quality. From January to April, total import and export value grew by 14.9% year-on-year. Alongside this volume growth, the trade structure is also improving. On one hand, market cooperation is becoming more diversified, with imports and exports to ASEAN, the EU, and Belt and Road partner countries maintaining double-digit growth. On the other hand, the product mix is being upgraded. Exports of mechanical and electrical products grew by 17.6%, with exports of electric vehicles and integrated circuits soaring by over 60%—specifically 68.1% and 78.3% respectively. Exports of wind turbine generators and parts, as well as industrial robots, also maintained rapid growth at 40.7% and 30%, demonstrating strong momentum.
Price trends signal positive developments. In April, the Consumer Price Index (CPI) rose by 1.2% year-on-year, maintaining a moderate increase above 1% for the third consecutive month. The Producer Price Index (PPI) rose by 2.8% year-on-year, continuing its upward trend for the second month. How should these price movements be interpreted? Li Chao offered the following analysis.
First, they reflect demand changes in related sectors. Driven by holiday effects from the Qingming Festival, May Day holiday, and spring breaks in some regions, increased travel demand pushed prices for services like tourism, hotel accommodation, and vehicle rentals above seasonal levels. Regarding PPI, accelerated green transformation and rapid development of artificial intelligence have boosted demand in related industries. Prices in non-ferrous metal smelting and processing, as well as computer and communication equipment manufacturing, rose by 22.5% and 1.5% year-on-year respectively.
Second, they reflect the effectiveness of earlier comprehensive adjustments. Continued efforts to address "internal competition" are showing results. Prices in the electrical machinery industry, including photovoltaic products, rose by 3.6% year-on-year. Price declines for fuel-powered and new energy passenger vehicles narrowed by 2.7 and 1.4 percentage points respectively compared to the full year of last year. Ongoing capacity management and transformation in traditional industries led to a 6.6 percentage point narrowing in the price decline for ferrous metal smelting and processing compared to last year.
Third, prices for essential goods have remained largely stable. Since the beginning of the year, the NDRC, in collaboration with other departments and local governments, has consistently ensured the supply and price stability of important livelihood commodities. Food prices have generally continued with minor fluctuations, with the cumulative year-on-year change for the first four months essentially flat.
Fourth, there has been a timely and forceful response to sudden situations. Previously, sharp fluctuations in international crude oil prices over a short period transmitted downstream to sectors like chemicals, exerting imported inflationary pressure on domestic prices. In response, temporary regulatory measures were adopted to control the extent of domestic refined oil price increases, effectively mitigating the impact of external factors on domestic production and livelihoods.
"Overall, price trends in April continued the moderate recovery observed since the second half of last year, sending positive signals of improving supply-demand relations and optimized market order," Li Chao stated. With the deepening implementation of a series of macroeconomic policies, supply-demand dynamics are expected to improve further, and prices are forecast to remain within a reasonable range.
Accelerating the Implementation of "AI+". What is the current progress of the "AI+" initiative, and what are the next steps? Li Chao explained that since last year, the NDRC, in collaboration with relevant departments, has issued over ten "AI+" policy documents for sectors including manufacturing, healthcare, and energy, based on their respective development foundations and characteristics, to continuously improve the policy framework.
"Simultaneously, we have worked with relevant departments to establish a batch of national AI application pilot bases in fields like manufacturing, healthcare, and transportation. This continuously improves support for key elements like computing power, data, and application scenarios, significantly shortening the transition cycle for AI technologies from the lab to testing grounds and from factories to markets, reducing implementation costs, and accelerating AI's empowerment of countless industries," Li Chao said.
Regarding safety regulation, Li Chao noted that previous policies such as the "Interim Measures for the Review and Service of Scientific and Technological Ethics in Artificial Intelligence" and the "Interim Administrative Measures for Human-like Interactive Services in Artificial Intelligence" have been issued. Currently, research on AI legislation is underway to strengthen safety governance capabilities and promote the healthy, orderly, beneficial, safe, and equitable development of AI.
In the field of embodied AI, Li Chao stated that efforts will focus on accelerating the construction of embodied AI training infrastructure, enabling robots not only to compete in arenas but also to "enter factories, shopping malls, and households," thereby speeding up their integration into various sectors.
"Recently, we have been planning to issue supporting documents to accelerate the implementation of 'AI+', further enhancing factor support," Li Chao said. "Concurrently, we will continue to promote the opening of high-value application scenarios by central and state-owned enterprises, create AI benchmark applications across various industries and regions, and accelerate the integration of AI into all aspects and links of production, operation, and management."
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