China’s advanced manufacturing upgrade backed to gather pace, driven by top priority status in five-year plan
- Beijing outlined a comprehensive plan to upgrade its manufacturing capabilities by 2025 via eight priority areas, including robotics, aircraft engines, new energy vehicles and smart cars
- Hi-tech manufacturing and equipment manufacturing outperformed overall manufacturing in March’s official manufacturing purchasing managers’ index (PMI)
China’s advanced manufacturing “can continue to outperform” traditional manufacturing, driven by heavy policy support from Beijing, after the sector led a key monthly indicator of economic activities in March.
Within the survey of sentiment among factory owners in the world’s second-largest economy, the readings for hi-tech manufacturing and equipment manufacturing were 53.9 and 52.9, respectively, two and one percentage points higher than the overall manufacturing PMI.
The government has made it clear this is a top policy initiative in the new [five-year plan]. There are tax benefits as well as credit support
“I expect [advanced manufacturing] to continue to outperform relative to the conventional manufacturing sector, given the policy support. The government has made it clear this is a top policy initiative in the new [five-year plan]. There are tax benefits as well as credit support,” said Zhiwei Zhang, chief economist at Pinpoint Asset Management.