High-tech manufacturing leads China’s industrial profits to record high: data

In 2021, the profit of China‘s industrial enterprises achieved faster growth boosted by the high-tech manufacturing industry, as the economy continued to recover steadily due to the government’s efforts to stimulate the vitality of industrial enterprises and promote high-quality development, an official from National Bureau of Statistics (NBS) said on Thursday.

In 2021, the profit of China’s industrial enterprises above the designated size hit 8.7 trillion yuan ($1.37 trillion), an increase of 34.3 percent over the previous year and 39.8 percent compared with the pre-epidemic levels in 2019, according to data released by the NBS on Thursday.

Official data showed that in 2021, the income of industrial enterprises above the designated size stood at 127.92 trillion yuan, a year-on-year increase of 19.4 percent.

Among 41 major industrial sectors, 32 industries saw profit growth. The profits across six industries including mining firms more than doubled, and 18 industries like equipment manufacturing and consumer goods manufacturing achieved double-digit growth in profits, Zhu Hong, a senior statistician from the NBS, said.

Zhu noted the high-tech manufacturing industry boosted China’s overall industrial profits. In 2021, high-tech manufacturing profits increased by 48.4 percent over the previous year, with the growth rate higher than the average level of the country’s industrial enterprises.

Among them, pharmaceutical, electronics and communications equipment manufacturing profits grew strongly, up 77.9 percent and 44.0 percent respectively year-on-year, contributing to the growth of high-tech manufacturing profits.

In 2021, driven by rising commodity prices, profits of mining and raw materials manufacturing saw accelerated growth of 190.7 percent and 70.8 percent respectively over the previous year. Among this category, coal and crude oil prices rose significantly during the year, boosting the profit growth of coal, oil and gas mining industries with a year-on-year increase of 212.7 percent and 584.7 percent, respectively.

Zhu noted that despite the rapid growth of the country’s industrial profits in 2021, in November and December profit growth fell significantly, and some industries especially small and micro enterprises were facing pressure.

In 2022, China will continue to improve the core competitiveness of its manufacturing sector, supporting the development of the real economy with policies like cutting taxes and fees as well as ensuring price stability, in a bid to promote the smooth operation of the manufacturing enterprises, Zhu said.

Source: Global Times

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