Recent official data showed slower growth in the profits of China's major industrial firms. Enterprises with annual main business revenue of at least 20 million yuan ($2.98 million) saw their profits expand by 3.5 per cent year on year (YoY) in the first four months of 2022, a sharp contrast to the 8.5 per cent growth in the first three months.
The Chinese industrial economy took a blow over the past three months as the omicron variant has forced factories in cities like Shanghai and Shenzhen and the heavy-industry region of Jilin province to suspend production, Chinese government media reported.
From textile and garment to high-tech semiconductors, auto parts and electronics, factory activity was disrupted accompanied by logistics bottlenecks.
Sichuan province has formed 10 working groups on stabilising industrial chains in electronics and equipment manufacturing. In Henan province, the local government has helped 40 ‘little giant firms’ characterised by professionalisation, refinement, specificity, and novelty to gain credit for financing.
MIIT will tap the potential of digitalisation and green upgrading to boost the industrial economy. It will start the infrastructure projects of 5G and industrial internet ahead of schedule, accelerate energy-saving and carbon-reducing transformation in key fields, and launch a new round of new-energy vehicle promotion activities in rural areas.
ALCHEMPro News Desk (DS)
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