As the year draws to a close, China's National Bureau of Statistics released November economic performance data on December 15, indicating that continued policy effectiveness has strengthened the "innovation-driven and high-quality" momentum of the economy, now in a "sprint" to achieve annual development targets.
Latest figures show that with industrial upgrading, China's equipment manufacturing sector—which features higher technological content and added value—has expanded rapidly. 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 increased by 12.9% and 8.4%, respectively.
Trade-in policies have boosted sales of home appliances, telecommunications equipment, and related goods. From January to November, retail sales of household appliances, audio-visual equipment, cultural and office supplies, and telecommunications devices rose 14.8%, 18.2%, and 20.9%, respectively. Demand for service-based consumption, including cultural, sports, and online entertainment, also continued to grow, with related retail sales exceeding 10% growth during the same period.
Investment-wise, large-scale equipment renewal policies have spurred corporate willingness to upgrade. Equipment and tool procurement investment rose 12.2% year-on-year in the first 11 months, contributing 1.8 percentage points to overall investment growth. Under ongoing national strategic projects and key sector safety capacity building, investment in power and heat production, internet services, and water transport grew 12.5%, 20.7%, and 8.9%, respectively.
Price levels, often seen as an economic "thermometer," showed positive trends after months of subdued performance. In November, China's CPI rose 0.7% year-on-year, marking a third consecutive monthly increase, while core CPI (excluding food and energy) also expanded steadily since May.
Stable economic performance and improving price conditions have supported corporate profitability. From January to October, revenues and profits of industrial enterprises above designated size grew 1.8% and 1.9%, respectively, with equipment and high-tech manufacturing profits rising 7.8% and 8%. Service sector revenues and profits also increased by 7.6% and 7.8%.
Fu Linghui, spokesperson for the National Bureau of Statistics, noted that despite challenges, China's economic resilience, strong policy support, and steady growth in new drivers provide favorable conditions to meet annual targets. Recent upward revisions of China's growth forecasts by the World Bank, IMF, and Asian Development Bank align with this outlook. IMF Managing Director Kristalina Georgieva highlighted China's potential to sustain robust growth, contributing around 30% to global growth in coming years.
Wen Bin, Chief Economist at China Minsheng Bank, anticipates a smooth completion of this year's socio-economic goals, with proactive policies in 2026 aiming for a strong start. During the 16th Five-Year Plan period, enhanced local and corporate engagement, coupled with sustained policy dividends, could drive both qualitative and quantitative economic growth.
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