Editor's note:

Tang Jie is a researcher at the Chinese Academy of International Trade and Economic Cooperation under the Chinese Ministry of Commerce. The article reflects the author's opinions and not necessarily the views of CGTN.

According to data for August released by the National Bureau of Statistics on September 15, China's production and demand grew steadily, employment and prices remained generally stable, and new growth drivers were cultivated and expanded. Overall, the national economy has maintained stable momentum with steady progress.

Stable production and demand, with a solid "ballast" effect

The production sector has remained generally stable, with robust growth in both industrial and service sectors. In August, China's industrial value added increased by 5.2 percent year-on-year, with high-tech manufacturing and equipment manufacturing sectors growing by 9.3 percent and 8.1 percent, respectively. This promoted overall industrial growth and continued optimization of the industrial structure. The manufacturing purchasing managers' index (PMI) rebounded to 49.4, while the business production and operation activity expectation index rose to 53.7, reflecting increased business confidence.

The service industry production index increased by 5.6 percent year-on-year. The production indices for information transmission, software and information technology services, finance, and leasing and business services saw rapid increase of 12.1 percent, 9.2 percent, and 7.4 percent, respectively. The service sector business activity index reached 50.5, with sectors like railway transportation and telecommunications experiencing strong growth. The peak summer consumption season boosted production in industries like food manufacturing and textiles and apparel.

Consumer demand is recovering modestly.

In August, total retail sales of consumer goods reached 3.97 trillion yuan, a year-on-year increase of 3.4 percent. Rural consumption (4.6 percent) grew faster than urban consumption (3.2 percent) , underscoring steady growth in domestic demand as a key driver of the economy. Service-related consumption, such as tourism, catering, and entertainment, remained high, serving as the primary driver of consumption growth. Sales of upgraded goods such as sports and entertainment products, furniture, and home appliances accelerated, increasing by 16.9 percent, 18.6 percent, and 14.3 percent, respectively, reflecting a trend of consumption upgrading.

Investment structure continues to optimize. Although real estate development investment declined by 12.9 percent, manufacturing and infrastructure investment both increased. From January to August, national fixed asset investment increased by 0.5 percent, maintaining overall growth. Excluding real estate development, the growth was 4.2 percent.

New momentum continues to grow

In the industrial sector, high-tech manufacturing and equipment manufacturing saw significant growth, with added value increasing by 9.3 percent and 8.1 percent, respectively, in August, outpacing overall industrial value added. In terms of product output, the output of 3D printing equipment, new energy vehicles, and industrial robots increased by 40.4 percent, 22.7 percent, and 14.4 percent, respectively, year-on-year. The rapid development of these emerging industries and new products is becoming a new driver of the country's economy. Furthermore, national online retail sales increased by 9.6 percent, and new energy vehicle sales grew by 22.7 percent, demonstrating continued consolidation of the digital economy and green, low-carbon consumption patterns.

For the service industry, the production index of information transmission, software and information technology services increased by 12.1 percent year on year, indicating that emerging service formats such as the digital economy are developing well, injecting new impetus into the development of the service industry.

High-quality development is steadily advancing

Structural optimization and industrial upgrading. The tertiary industry's share of GDP increased, and the service industry production index grew by 5.6 percent. Rural consumption grew faster than urban consumption, narrowing the gap between urban and rural consumption. The rapid development of high-tech manufacturing and equipment manufacturing reflects the trend of industrial upgrading towards high-end, intelligent, and green development. Modern services within the service sector are developing positively. Business activity indices for railway transportation, water transportation, air transportation, telecommunications, radio, television, and satellite transmission services, and capital market services are above 60, reflecting the structural optimization and high-quality development of the service industry. Private investment (excluding real estate) grew by 3.0 percent, and the vitality of the private economy has increased.

Structure of foreign trade optimized. From January to August, the general trade of imports and exports grew by 2.2 percent, accounting for 63.9 percent of the total import and export volume. Imports and exports with countries participating in the Belt and Road Initiative increased by 5.4percent. In addition to this, the imports and exports by private enterprises increased by 7.4 percent, accounting for 57.1 percent of the country's total import and export volume. Exports of mechanical and electrical products increased by 9.2 percent, accounting for 60.2 percent of the total export volume. These data indicate that China's trade structure is continuously optimizing and its position in the global industrial chain is continuously improving, which is conducive to promoting high-quality economic development.

Innovation-driven and green development. From January to August, investment in the information services industry grew by 34.1 percent, and aerospace equipment manufacturing by 28.0 percent, demonstrating significant progress in innovation-driven and green transformation. Industrial producer price data shows rising prices in the new energy-related non-ferrous metal smelting and rolling processing industries, while prices in traditional high-energy-consuming industries such as coal mining remain in a deep decline. This reflects the impact of green and low-carbon development on industrial development and is driving the economy's transition toward green development.

The above data show that China's economy is continuing to demonstrate resilience, with positive momentum across production, consumption, and foreign trade. Despite facing numerous domestic and international challenges, including uncertainty in external demand, adjustments in the domestic real estate market, and insufficient domestic demand in some sectors, the economy is expected to maintain stable and healthy operation through continued deepening of reforms, strengthening of innovation, and promotion of green development.