As the year draws to a close, China's National Bureau of Statistics released November economic performance data on the 15th, showing that sustained policy effectiveness has strengthened the "innovation-driven and high-quality" momentum of the economy, positioning it for a strong finish to achieve annual development goals.
Latest figures indicate that China's equipment manufacturing sector, characterized by higher technological content and added value, is expanding rapidly amid industrial upgrading. In November, value-added output in equipment manufacturing rose 7.7% year-on-year, continuing to outpace overall industrial growth and contributing 59.4% to the growth of industrial value-added output. Meanwhile, production indices for information transmission, software, IT services, leasing, and business services surged by 12.9% and 8.4%, respectively.
Trade-in policies have spurred faster sales growth in home appliances, telecommunications equipment, and related goods. From January to November, retail sales of household appliances, audiovisual equipment, cultural and office supplies, and telecommunications devices by above-quota enterprises increased by 14.8%, 18.2%, and 20.9%, respectively. Demand for service-based consumption, including cultural, sports, and online entertainment, also remained robust, with retail sales in leisure services and communication/information services both exceeding 10% growth.
On the investment front, large-scale equipment renewal policies have boosted corporate willingness to upgrade facilities. Equipment and tool procurement investments climbed 12.2% year-on-year in the first 11 months, driving overall investment growth by 1.8 percentage points. Under the "dual priorities" initiative (national major strategies and key sector security capacity building), investments in power and heat production/supply rose 12.5%, while internet-related services and water transport sectors grew 20.7% and 8.9%, respectively.
Price trends, often seen as an economic barometer, showed positive shifts despite low overall levels this year due to multiple factors. In November, China's CPI rose 0.7% year-on-year, marking a 0.5-percentage-point increase from October and the third consecutive monthly uptick. Core CPI (excluding food and energy) has also steadily expanded since May.
Stable economic performance and improving price conditions have supported corporate profitability. From January to October, revenues and profits of industrial firms above designated size grew 1.8% and 1.9%, respectively, with cumulative growth sustained for three months. Notably, profits in equipment manufacturing and high-tech manufacturing advanced 7.8% and 8%. Similarly, service sector revenues and profits rose 7.6% and 7.8%.
National Bureau of Statistics spokesperson Fu Linghui noted that despite challenges, China's economic resilience, strong policy support, and steady new growth drivers provide favorable conditions to meet annual targets. Recent upward revisions to China's growth forecasts by the World Bank, IMF, and Asian Development Bank reinforce this outlook. IMF Managing Director Kristalina Georgieva highlighted China's potential for robust growth, projecting its global contribution to remain around 30% in coming years.
Wen Bin, Chief Economist at China Minsheng Bank, anticipates a successful completion of this year's socio-economic goals, with 2026 policies likely to adopt a "more proactive" stance for a strong start. During the 16th Five-Year Plan period,充分调动ed local and corporate initiatives, coupled with sustained policy dividends, are expected to drive qualitative and quantitative economic growth.
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