China's value-added industrial output up 5.8 pct in first three quarters

China's value-added industrial output, an important economic indicator, rose by 5.8 percent year on year in the first three quarters of 2024, while gains were seen across the board in traditional industry as well as agricultural and service output, official data showed on Friday.

During a press conference in Beijing on Friday, Sheng Laiyun, deputy director of National Bureau of Statistics, introduced key economic output figures for the first three quarters, beginning with the agricultural sector.

"The agricultural production situation is relatively favorable, with overall stability in animal husbandry. In the first three quarters, the value added of crop farming increased by 3.7 percent year-on-year. The total output of early-season rice in China increased by 3.46 million tons compared to the previous year, a growth of 2.0 percent. The autumn harvest is progressing smoothly, and a good harvest of grain is expected for the entire year," said Sheng.

In the first three quarters, the production of pork, beef, mutton, and poultry meat reached 70.44 million tons, a year-on-year growth of 1.0 percent.

Specifically, beef and poultry meat production increased by 4.6 percent and 6.4 percent respectively, while pork and mutton production decreased by 1.4 percent and 2.2 percent respectively. Milk production dropped by 0.1 percent, while poultry egg production increased by 3.5 percent.

In addition to China's farms, the country's factories have also grown more productive this year, Sheng highlighted.

"Industrial production has maintained stable growth, with the equipment manufacturing and high-tech manufacturing sectors growing rapidly. In the first three quarters, the value added of China's industrial enterprises above designated size increased by 5.8 percent year-on-year," he said.

Enterprises above the designated size refer to those with annual main business revenue of 20 million yuan (around 2.8 million U.S. dollars) or more.

In September, the industrial output rose 5.4 percent year on year, and the growth pace was 0.9 percentage points faster from the previous month.

"The value added of the equipment manufacturing industry grew by 7.5 percent year-on-year, while the high-tech manufacturing industry saw an increase of 9.1 percent. Their growth rates were 1.7 and 3.3 percentage points higher than that of the overall industrial enterprises above designated size, respectively," the official added.

In September, the value added of industrial enterprises above the designated size increased by 5.4 percent year-on-year, accelerating by 0.9 percentage points compared to the previous month. On a month-on-month basis, it grew by 0.59 percent.

In September, the Purchasing Managers' Index (PMI) for the manufacturing sector was 49.8 percent, up 0.7 percentage points compared to the previous month.

The deputy director also pointed to output growth that spanned the entirety of the country's service industry.

"The service sector continues to rebound, with modern service industries showing strong development. In the first three quarters, the value added of the service industry increased by 4.7 percent year-on-year. In breakdown, the value added of the information transmission industry, the software and information technology services industry, the leasing and business services, transportation, warehousing [and postal services] industry, the accommodation and catering services industry, and the wholesale and retail trade industry increased by 11.3 percent, 10.1 percent, 6.8 percent, 6.3 percent, and 5.4 percent respectively," Sheng said.

China's value-added industrial output up 5.8 pct in first three quarters

China's expanding ties with the Global South have pushed trade growth far beyond the global average despite the tariff pressure from the U.S., according to experts.

"Whilst the Trump tariffs ultimately led to a significant drop-off in Chinese exports to the United States and vice versa, the trading relationships across much of the rest of the world continue to grow, and China's trading relationships across the Belt and Road Initiative countries, as well as with the Global South, more broadly speaking, has grown at rates far greater than global trade growth as a whole. And we see that evidenced by the latest data. When we break that down, we see that has been underpinned by the developments in high-technology products in particular, whether it's EVs, whether it's even in semiconductors, as well as photovoltaic panels, etc.," said Dr. Warwick Powell, an adjunct professor at the Queensland University of Technology, in a TV interview with China Global Television Network (CGTN) on Thursday.

"And you've got to look at the places where the growth is taking place. Africa, I think, is a very interesting case in point, because the kinds of things that China has been exporting and expanding in terms of its exports are all about African economic development -- its machinery, its energy systems, its technology, and this really goes to delivering on China's broader strategic ambition as an emerging great power to be an enabling great power, supporting the development of its partners around the world," he added.

Qian Jun, executive dean of International School of Finance at Fudan University, attributed the trade growth to Chinese firms' endeavor to tap into key regions like ASEAN, Latin America, the Middle East and Africa.

"The main increase of export comes from, as we have discussed, these new areas: The ASEAN economy -- southeast Asia remains the most important trading partner -- and also Latin America, the Middle East, and these [other such] new regions. So, the exporters of the Chinese companies are also very good at adjusting their destinies, their strategies, how to market their goods and services, so that the reliance on the U.S., for example, has gone down a lot," Qian said.

China's trade momentum increasingly powered by Global South: experts