More efforts needed to boost production

Technicians check vehicles rolling off the production line of an automaker in Yibin, Sichuan province. ZHUANG GEER/FOR CHINA DAILY

Regulator urges expanding investment, structural adjustments of key industries

China will take more steps to boost the steady growth of the industrial economy in a bid to consolidate economic recovery in the first quarter, officials and experts said.

The department of industry at the National Development and Reform Commission, the country's top economic regulator, recently held a symposium with several key provinces in Hangzhou, Zhejiang province, saying steady growth of the industrial economy will serve as the "ballast stone" stabilizing the overall economy.

More efforts should be made to speed up the resumption of work and production, stabilize and expand investment in the manufacturing sector, promote structural adjustments of key industries and create a better development climate, it was stated at the meeting.

" (We will) strive to promote the steady growth of the industrial economy in the first quarter … laying a solid foundation for stabilizing the overall economy," it said.

Experts said several provincial-level governments have pledged intensified efforts to prop up growth and keep economic performance within a reasonable range, pointing to a robust 2023 amid signs of notable economic recovery.

This year, Hunan province will accelerate the push for building itself into a center of advanced manufacturing. The province will actively develop new industries such as electronic information, new energy vehicles and modern petrochemicals as well as hasten construction of a batch of major industrial projects this year, the provincial government said in an article posted on the NDRC's official WeChat account.

In 2023, the Inner Mongolia autonomous region will focus on accelerating industrial adjustment and upgrading and promoting high-quality development of the industrial economy, including implementing 580 projects for strengthening industrial chains, official data showed.

Citing government work reports released by localities, Zhou Maohua, a macroeconomic analyst at China Everbright Bank, said most provincial-level regions are targeting GDP growth of above 5 percent this year, voicing optimism for a robust 2023.

He said local governments are giving priority to expanding domestic demand, promoting improved consumption, supporting industrial transformation and upgrading and continuously deepening reforms.

There are positive signs showcasing a strong recovery of economic activity.

Official data showed the official purchasing managers index for China's manufacturing sector bounced back to 50.1 in January after reaching 47 in December — above the 50-point mark that separates growth from contraction. And China's nonmanufacturing PMI came in at 54.4 in January after 41.6 in December, returning to expansion territory for the first time since September.

Louise Loo, senior economist at British think tank Oxford Economics, said their team now expects a faster economic recovery in China, as the combination of a stronger showing in retail and consumer-focused segments as well as policymakers' pro-growth policy pivots are arguably reasons to be sanguine on China's outlook this year.

"Certainly, a rebound in demand in the near term is pretty much guaranteed as reopening proceeds. In terms of policy, we think authorities' proactive and pro-growth stance implies that data-dependent macro policy easing will help stabilize the economy in the near-term, with targeted property sector support, possible relief measures for households, and a push into increased off-balance sheet infrastructure spending as the preferred policy levers," Loo said.

Robin Xing, Morgan Stanley's chief China economist, said China's economy is expected to grow by 5.7 percent in 2023, contributing to around 40 percent of global economic growth.

Looking ahead, Xing said China will likely set a 2023 GDP growth target of above 5 percent, with measures such as further waves of monetary and fiscal easing to support the rebound.