In the second half of the year, the internal and external operating environment of China’s industrial economy is more complex than expected

The person in charge of the Ministry of Industry and Information Technology said at the summer report meeting on the operation of China's industrial economy on the 9th that in the second half of the year, China's internal and external industrial operating environment is more complex than expected, and industrial transformation and innovation are particularly urgent.

According to data from the Ministry of Industry and Information Technology, from January to July, China’s industrial production grew steadily, and the industrial added value above designated size increased by 14.3% year-on-year. However, the unbalanced, uncoordinated and unsustainable contradictions in development are still prominent. The economic operation is in a sensitive period of change, and the uncertainty in the operation of the industrial economy has increased.

First of all, it is manifested in the overall tightening of the external environment of the industrial economy. Huang Libin, deputy director of the Ministry of Industry and Information Technology Supervision and Coordination Bureau, said that the slowing economic recovery in the world’s major economies, the continued increase in global inflationary pressures, the further deterioration of the sovereign debt crisis, and the proliferation of the global debt crisis all contributed to the increase in uncertainty and instability in the recovery of the world economy. Through the financial, trade, investment and other channels to China.

In addition, the three major pull factors have generally slowed down. From January to July, the total retail sales of consumer goods increased by 16.8% year-on-year, and the actual growth rate after deducting price factors was lower than the growth rate of industrial production. The growth rate of foreign trade exports fell by 15.8 percentage points year-on-year, showing a slowing trend month-on-month. Investment pull has also weakened.

The prices of energy resources, labor, and other factors have risen sharply, making it more difficult for SMEs with weaker cost-dilution capabilities. The tightening of monetary resources has made the problem of corporate financing more prominent.

“Taking enterprises as an example, enterprises that are difficult to perform are more difficult, and the difficulties in small and micro business operations are increasing,” Huang Libin said.

From January to July, of the 310,000 large-scale enterprises, the number of loss-making enterprises was 40,000, with a loss of 12.7%. It is worth noting that the loss of loss-making enterprises increased by 22.2% in January-February, rose to 41.6% in January-June, and rose further to 46.9% in January-July, and the level of losses of difficult companies increased month by month.

With the overall external operating environment being tight, small and small enterprises below the scale of large-scale and large-scale enterprises are faced with more difficulties due to their weaker anti-risk capabilities and limited space for digestion costs.

"For enterprises, during the financial crisis, the main problem was that there were no orders. Now, there are orders and supply problems." Jin Yong, director of the Institute of Industrial Economics at the Chinese Academy of Social Sciences, said: "In the financial crisis, it was still reliable to expand. Supporting industrial growth, this year, this road will not work anymore, and urgently needs innovation to upgrade to release more room for growth."

The Ministry of Industry and Information Technology indicated that it will focus on promoting industrial restructuring and transformation and upgrading, intensifying technological transformation, strengthening support for the upgrading of traditional industries, optimizing the development environment for small and medium enterprises, and improving the quality and efficiency of industrial operations.

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