China retains world’s largest manufacturing country for 11 straight years

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Observer Report
Beijing

Despite challenges like Covid-19, sanctions by the US and allies China has maintained its role of the world’s largest manufacturer for 11 years in a row, with its value-added industrial output increasing from 23.5 trillion yuan (about $3.63 trillion) to 31.3 trillion yuan during the past five years, said Xiao Yaqing, minister of the Ministry of Industry and Information Technology (MIIT).

According to a report, the country has achieved unprecedented progress in developing itself into a manufacturing power and a cyber power and all the major tasks have been completed as scheduled, Xiao noted.

Last year, the value-added industrial output of China reached 31.3 trillion yuan, accounting for nearly 30 percent of the global manufacturing output.

During the 13th Five-Year Plan period (2016-2020), the average growth rate of the value-added output from China’s high-tech manufacturing sector reached 10.4 percent, 4.9 percentage points higher than that of the overall industrial output.

The value-added industrial output of information transmission and software and information technology service industries also soared from around 1.8 trillion yuan to 3.8 trillion yuan.

The country has made great strides in innovation capability, information infrastructure construction, digitalization-industrialization integration, and green and low-carbon industrial development.

From 2016 to 2019, the total R&D investment of enterprises above designated size went up by 27.7 percent.

As of the end of 2020, household penetration of fixed broadband in China reached 96 percent, while the mobile broadband penetration rate stood at 108 percent.

As of the end of last year, digital design tools had been available in 73 percent of major enterprises in key industries of China, 11 percentage points higher from 2015.

Besides, energy consumption per unit of added value for large-scale industrial enterprises dropped 16 percent in the past five years.

Traditional industries accelerated the progress of upgrading and transformation from 2016 to 2020.

The country completed its goal of cutting 150 million tonnes of iron and steel production two years in advance, and has preliminarily finished the building of a green manufacturing system by setting up 2,121 green factories, 171 green industrial parks, and 189 green supply chain enterprises.

China’s emerging industries of strategic importance experienced rapid development, and new breakthroughs have been achieved in frontier areas.