Fresh figures released on August 17 by the National Bureau of Statistics show that in July, the value added of industrial enterprises above a designated size grew by 4.5% year-on-year, a slowdown of 0.8 percentage points from the previous month, while total retail sales of consumer goods rose 0.6%, down 0.4 percentage points from June. In the January-to-July period, fixed asset investment nationwide (excluding rural households) fell 6.7% year-on-year, with the decline widening by 1 percentage point from the first half.
A preliminary estimate presented at a State Council Information Office press conference on August 17 indicates that over the first seven months, new growth drivers contributed 50.9% of the growth in industrial output above the designated size, up 3 percentage points from the first half. This marks the first time these emerging forces have shouldered more than half of the industrial growth burden.
According to Fu Linghui, spokesperson for the National Bureau of Statistics and Chief Economist, artificial intelligence has been accelerating its integration across various industries this year, both upgrading traditional sectors and spawning new industries and business models. This has sped up research and development cycles, made production smarter, and improved product quality, effectively pressing the fast-forward button on the transition from old to new growth drivers.
On the production side, the digital products manufacturing sector has posted standout results. In July, the value added of electronic components and equipment manufacturing and intelligent equipment manufacturing related to AI grew by 24.7% and 15.1% respectively. Output of optical fiber and 3D printing equipment surged 21.1% and 65.7%, while smart bracelet production doubled. Against this backdrop, questions arise: can market demand related to AI and the green transition absorb the increased supply from related supply chains? Are there still supply gaps? And looking ahead, how sustainable is the growth of demand in these areas?
AI and 3D Printing Industries Reinforce Each Other
Data shows that in July, growth in 3D printing equipment output accelerated by 22.1 percentage points compared to the 43.6% pace recorded in April. What is driving this accelerating growth, and what role does 3D printing play in the AI industry?
In a phone interview, Wan Zhe, a professor at Beijing Normal University and economist, attributed the rapid expansion to several factors. First, policy support has intensified. The 15th Five-Year Plan for Expanding Consumption calls for increasing the supply of digital consumer products, including AI, smart wearables, intelligent robots, and 3D printing equipment. Many provinces and cities have also included 3D printing in key industry support directions, with some offering equipment purchase subsidies. These measures have effectively expanded market space and unlocked consumer and educational demand.
Second, the rapid advancement of AI technology has significantly lowered the barrier to using 3D printing, pushing demand from professional users toward the general public. Traditionally, 3D printing required specialized skills in modeling, slicing, and process parameter settings. Now, generative AI has quickly been applied in modeling, slicing, intelligent path planning, and defect recognition, transforming 3D printing from an engineer's tool into a mainstream application for home education, DIY projects, small workshops, cultural creative products, and personalized customization.
Third, in the industrial sector, applications in aerospace, medical implants, robot components, and complex structural parts are also accelerating. With rapid iteration of AI hardware, 3D printing can significantly shorten development cycles by enabling structural verification and functional prototyping, reducing trial-and-error costs and speeding up product iteration.
Fourth, exports of 3D printing equipment are growing rapidly. China holds a substantial market share in global consumer-grade 3D printing equipment, with mature supply chain support, clear cost advantages, and strong delivery capabilities. Rising exports indicate growing overseas demand and increasing international recognition of Chinese-made 3D printing equipment.
Wan further noted that the 3D printing industry is moving from a technology validation phase into large-scale deployment. With falling equipment prices, richer material systems, maturing software ecosystems, and enhanced capabilities driven by AI, the industry now has the conditions for mass adoption. In the AI landscape, 3D printing should not be viewed as a peripheral support tool but as a vital bridge connecting digital intelligence with physical manufacturing.
"Generative AI can produce images, videos, code, and 3D models, but converting virtual designs into actual physical products still requires manufacturing capability. 3D printing provides an effective pathway for this transformation, quickly turning AI-generated designs into tangible objects, allowing AI to move beyond the screen and directly participate in product creation. Additionally, 3D printing serves as an important manufacturing tool for rapid AI hardware iteration. It also supports AI computing infrastructure, particularly in liquid cooling. As AI chip power consumption continues to rise, high-density computing centers demand better heat dissipation. Components such as micro-channel heat sinks and complex flow channels are difficult, costly, and time-consuming to produce using traditional methods. 3D printing enables integrated manufacturing of these complex internal channels more efficiently, making it a key manufacturing path for AI computing thermal management," Wan explained.
Assessing Demand Sustainability for AI and Related Markets
Data for the first seven months shows that energy consumption per unit of value added in industrial enterprises above designated size fell 3.5% year-on-year, indicating lower energy intensity per unit of industrial growth. In green transition sub-sectors, Fu Linghui noted at the press conference that in July, the bio-based materials manufacturing industry grew 20.6% year-on-year. Growing demand for new energy vehicles and new energy storage drove lithium-ion battery output up 58.8%, while production of hydro-turbine generator sets and water pollution prevention equipment rose 79.4% and 18.6% respectively.
Hydro-turbine generators convert water energy into electricity using water turbines as prime movers and are the primary power equipment for hydropower stations. What factors are driving the growth in production of these generator sets?
Wan Zhe analyzed that the core growth factor lies in the concentrated construction of pumped storage power stations. With large-scale grid integration of wind and solar power, energy storage demand has surged, and pumped storage remains the most mature and economically viable large-scale storage solution. According to plans, installed capacity of pumped storage stations nationwide is expected to reach approximately 160 million kilowatts by 2030. Currently, numerous megawatt-scale pumped storage projects are being rolled out intensively, directly driving explosive growth in related orders and output. Meanwhile, expansion of conventional hydropower capacity, power supply security needs, and breakthroughs in domestic technology are also important contributing factors. Hydro-turbine generator sets not only generate electricity but also perform grid regulation, energy storage, and safety assurance functions, placing higher demands on equipment performance.
In this context, can market demand related to AI and the green transition absorb the increased supply from related supply chains? Are there still supply gaps? Looking ahead, how should we view the sustainability of demand growth in these areas?
Wan Zhe said that on the demand side, AI and green transition-related industries have genuine, sustained, and scalable expansion needs. On the supply side, the main challenge is structural gaps. The core issue is not whether products exist, but whether high-quality, green, stable, reliable, and low-cost supply can be provided.
Taking the energy storage industry as an example, Wan noted that orders are growing rapidly, but not all production capacity can be absorbed by the market. Despite strong demand, high-end effective capacity remains tight. Low-end cells and low-quality integrated systems face price competition and oversupply pressure, while high-safety, long-life, high-consistency storage products—particularly those suited for AI data centers and new power systems—are in short supply. High-end capacity for key materials such as lithium iron phosphate has already been locked in by long-term orders from leading battery companies. Therefore, the market demand problem is not overall insufficiency but structural inadequacy of high-end effective supply, making corporate adjustment and upgrading critically important.
Comments