By Yang Jianlong, Research Department of Industrial Economy, DRC; Ma Qinglan, Lang Fengbo & Zhou Qi, State Research Information Technology Co. Ltd. (SRIT)

Research Report, No.315, 2020 (Total 6059) 2020-12-29

Abstract:In the third quarter of 2020, China’s industrial production basically recovered to the average level in history, enterprise cost control became further optimized, market supply and demand remained generally stable, and profits and efficiency of industry continued to rise. However, market demand had not been released normally, and the industrial enterprises’ comprehensive boom indicators witnessed a waning a growth compared with the second quarter. The recovery of business performance of different industries and regions in China was obviously differentiated, with equipment manufacturing industry taking the lead in business recovery, while the industry of traditional consumer goods continued to decline sharply. In this context, the focus of micro policies needs to be timely adjusted. With the phasing out of inclusive policies, market demand needs to be stimulated to maintain growth; necessary protective bailout policy measures need to be taken toward small and medium-sized enterprises (SMEs) in the traditional consumer goods industry, increase financial resources to support SMEs in this field through interest rate cuts and deferred payments, and expand the market scope through new community service models. At the same time, large e-commerce enterprises need to be restricted from plundering the market by unfair competition and from worsening the environment of traditional SMEs. We need to continue to tap the consumption potential of counties and townships. Based on the achievements made in poverty alleviation drive, we need to increase the market share of smart homes products and new energy vehicles in rural areas. Last but not least, we need to further stabilize and upgrade the performance of advanced manufacturing industry so as to enable it to play a more active role in maintaining economic growth.

Keywords: industrial boom indicators, classified industry, policy focus