In recent discussions surrounding China's industrial and information technology landscape, the national conference set forth ambitious projections for the year 2024. The industrial economy in China is anticipated to remain stable with moderate growth, forecasting an increase of approximately 5.7% in the value added by large-scale industrial enterprises compared to the previous yearThis outlook reveals a resilient industrial sector, characterized by robust economic performance across various sectors.

The emphasis on high-quality development within the manufacturing sector is notableSince the beginning of 2024, the value added by large-scale industries has shown an upward trend, highlighting the significant role of manufacturing in maintaining economic stabilityThe nation has cultivated an impressive number of national-level intelligent manufacturing demonstration factories, currently totaling 421, alongside 700 high-caliber 5G factories and 1383 newly established national-level green factories

The adoption of cutting-edge technologies, including big data, cloud computing, and artificial intelligence, has accelerated innovation across industries, contributing to the rapid growth of emerging new sectors like low-altitude economy, commercial aerospace, and bio-manufacturingAs a result, six key future industries, encompassing future manufacturing, information technology, materials, energy, space, and health, are witnessing swift technological advancements and novel business models, driving new momentum for economic growth.

Furthermore, investment in the manufacturing sector has become increasingly vitalIn 2024, industrial investments are maintaining a robust growth rate, with manufacturing investments significantly contributing to the overall investment landscapeNotably, investments in consumer goods manufacturing, equipment manufacturing, and raw materials production are accelerating

• Tesla Finally Strikes Back
• What’s Next for the Dollar?
• NVIDIA Becomes a Trendsetter at CES
• Morning Brief FM | January 11, 2025
• Stocks Slide as Rate Hike Fears Ease

From January to November 2024, investments in high-tech manufacturing experienced an 8.2% increase year-on-yearStreamlined policies, such as the "Action Plan for Promoting Large-Scale Equipment Renewal and Consumer Goods Trade-In," have empowered equipment purchase investments, enhancing their impact.

The overall innovation capability across industries is noticeably on the riseThe year 2024 sees China accentuating the importance of technological innovation in establishing a modern industrial framework, boosting the generation of "new" growth driversOn one hand, enterprises are empowering themselves as primary innovators, increasingly collaborating with academia and research institutes to create R&D hubsThese partnerships involve a growing number of companies building laboratories and research platforms with universities, fostering technological advancements that enable new levels of productivity

On the other hand, breakthroughs in industrial technology continue to emergeRemarkable innovations include "Dream," the first ocean drilling vessel independently designed in the country, boasting drilling capabilities of up to 11,000 meters, and the operation of the third-generation autonomous superconducting quantum computer, "Source Wukong." Additionally, the "Chang'e 6" lunar mission successfully executed humanity's first sample collection from the far side of the Moon.

The efficiency of industrial transformation and upgrading is very pronounced in 2024, with traditional growth models transitioning swiftly alongside new onesThe manufacturing sector is accelerating through intelligent transformation and digital upgradesTraditional industries, such as steel and coal, are optimizing their production capacities and enhancing their competitiveness through technological improvements and mergers

Meanwhile, emerging industries are rapidly developing, and future industries are taking shape more prominentlyChina's high-tech manufacturing continues to expand at a swift pace, with its value-added growth consistently outpacing the overall manufacturing growth rate, reflecting a clear shift towards a "new" industrial state.

Looking forward to 2025, the industrial economic environment poses significant challenges and complexities both domestically and internationallyHowever, China stands resilient with its comprehensive industrial system, vast market capacity, and a robust information infrastructure, ensuring that the long-term trend of favorable industrial economic development remains steadfastIt is essential to capitalize on various positive factors, translating them into solid and measurable successes in the industrial economy, thereby establishing a solid foundation for the effective initiation of the 14th Five-Year Plan.

Further initiatives focus on optimizing the industrial structure

The government is implementing actions to cultivate emerging industries and develop new growth drivers, particularly in strategic sectors such as artificial intelligence, renewable energy, and biotechnologyThere are concerted efforts to promote large-scale applications of new manufacturing technologies, products, and scenariosLocal governments are encouraged to leverage regional advantages to create specialized emerging industry clusters while fostering synergy between upstream and downstream enterprisesMoreover, there are dedicated projects aimed at upgrading traditional industries through technology reforms, and measures to encourage the fusion of manufacturing and service industries are being prioritized.

To enhance the leading role of technological innovation, the nation is intensively implementing major national science and technology projects, revisiting innovation organization models, and prioritizing the development of core technologies that can drive industrial progress

The critical influence of technological shifts on new industries, business types, and models is being amplified through the convergence of artificial intelligence, big data, cloud computing, and the Internet of Things with traditional sectorsFurthermore, tax incentives such as increased R&D expense deductions are being intensified to support enterprises in establishing cooperation platforms for academia and research institutions, thereby facilitating collaborative efforts in tackling pivotal technical challenges and fostering the conversion of scientific achievements.

Strengthening various forms of support for essential elements remains a top priorityA robust multi-tiered financial service system is being developed to guide financial institutions in increasing credit allocations to industrial enterprisesNew financial products and services are being innovated to support this effort