Trend of economic recovery being consolidated

According to the latest data, the industrial enterprises above the designated size have seen their profit rate grow by 0.8 percent compared with that of last year, while their growth rate is 7.3 percentage points higher than that of last month.

Their performance reflects the recovery tendency of the Chinese economy. In the second quarter of the year, with a fresh wave of pandemic spreading in some places, domestic industrial enterprises faced heavy pressure; the industrial enterprises’ profit rate fell in April.

It was in May that the series of stabilizing policies introduced by the government began to take effect and stopped the profit rate from continuing its tendency to fall. In June, with industry and supply chains further recovering, the profit growth rate finally turned from negative to positive, proving the resilience of the economy.

That would not be possible without the constantly improved structure of the industrial sector. In March, the rising prices of raw materials caused the profit rate of industrial enterprises to drop, a tendency that was reversed in June with the downstream industries improving their profit rates. The recovery of the manufacturing sector has laid a sound basis for that.

Behind its recovery is the series of policies that have come into effect. Tax has been cut, administrative fees have been lowered, while social security payments have been delayed. In the first half of the year alone, small and medium-sized enterprises enjoyed tax and administrative fee cuts of almost 1.8 trillion yuan ($266.94 billion), which has given a big boost to the recovery of enterprises.

Further, the digitalization process of industries has been accelerating, with 75.1 percent of industrial enterprises above the designated size having adopted digital research and development tools.

With the pandemic now largely under control, domestic enterprises are recovering quickly. The country’s industrial economy has shown its strong resilience and development strength and as the recovery is consolidated the national economy will continue to improve.