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Development of the industrial communication industry in the first half of 2020

 Since the beginning of this year, the industrial and information system has conscientiously implemented the decisions and deployments of the Party Central Committee and the State Council on the overall promotion of pneumonia epidemic prevention and control and economic and social development, intensified efforts to do the “six stability” work, and implement the “six guarantees” tasks. While striving to strengthen the guarantee of key medical supplies, we will make every effort to promote the coordinated resumption of work and production in the manufacturing industry chain, accelerate the cultivation of new drivers of development, basically return industrial production to the right track, new industries and new business patterns will grow against the trend, and the communications industry will generally operate smoothly. 

       The main indicators of industrial production rebounded steadily

In the first half of the year, the value added of the industrial enterprises above designated size nationwide fell by 1.3% year-on-year, and the rate of decline was 7.1 percentage points narrower than that in the first quarter. Among them, the second quarter increased by 4.4%, and the production and sales situation improved. Among 41 major industrial sectors and 31 provinces and cities, 26 industrial sectors and 29 provinces and cities achieved positive growth in value added in June. The profitability of enterprises has further improved. In the first five months, the profit margin of operating income of industrial enterprises above designated size reached 5%, an increase of 1.06 percentage points from the first quarter, and the rate of profit decline narrowed to 19.3%, which increased by 6% in May.

       The recovery situation varies among industries 

The equipment manufacturing industry has clearly recovered. The value-added in the first half of the year increased by 0.4% year-on-year, reversing the negative growth of 14% in the first quarter, with an increase of 9.7% in June. The policy of encouraging automobile consumption has achieved obvious results. The growth rate of the added value of the automobile industry in May and June reached 12.2% and 13.4%, respectively. In June, automobile production and sales hit a new high in the year. Driven by the new demand for 5G construction and epidemic prevention and control, the electronics manufacturing industry has bucked the trend. The value added in the first half of the year increased by 5.7% year-on-year. Since the second quarter, it has shown double-digit growth in each month. The raw material industry was generally stable. The value added in the first half of the year fell by 0.3% year-on-year, which was less than 1 percentage point of the overall industry. Among them, the increase in June was 5%. The output growth of crude steel and ten non-ferrous metals continued to accelerate. Affected by sluggish consumption and sharp decline in exports, light industry, textiles and other industries have recovered slowly. The value added in the first half of the year fell by 6% and 6.7% year-on-year, respectively, and the second quarter has not rebounded to a positive growth range. 

       High-tech industry grows against the trend

In the first half of the year, the added value of the high-tech manufacturing industry increased by 4.5%. Among them, industries such as medicine, electronics and communication equipment, computers and office equipment, medical instruments and equipment showed good growth. The output of new products such as smart watches, 3D printing equipment, and charging piles maintained More than double-digit growth. The integration of information technology and manufacturing has accelerated. In the first half of the year, the software and information technology service industry achieved a year-on-year revenue growth of 6.7%. As of the end of June, the penetration rate of digital R&D and design tools and the numerical control rate of key processes reached 71.5% and 51.1% respectively. There are more than 70 industrial Internet platforms with strong industry and regional influence, and the number of connected industrial equipment reaches 40 million units (sets).

       Helping companies to bail out business confidence

   A series of tax cuts and fee reductions in fiscal, taxation, finance, and social security have helped companies to overcome the impact of the epidemic and tide over difficulties. In the first five months, the loss of enterprises above designated size narrowed from 34.8% in the first quarter to 26.7%, and the increase in loss of loss-making enterprises fell 3.9 percentage points from the first quarter. The policy of precise assistance to small and medium-sized enterprises was used to increase efficiency. In the first half of the year, the value added of small, medium and micro-industrial enterprises above designated size fell by 1% year-on-year, and the rate of decline was significantly narrowed by 10.3 percentage points from the first quarter. As various policies continue to exert force, market expectations have further recovered. The Manufacturing Purchasing Managers Index (PMI) in June was 50.9%, up 0.3 percentage points from the previous month, and stayed above the line of prosperity for 4 consecutive months.

       Information and communication industry is operating smoothly

In the first half of the year, the value added of the information transmission, software and information technology service industries increased by 14.5% year-on-year, 1.3 percentage points faster than the first quarter; calculated at the constant price of the previous year, the total telecommunications business increased by 19.3% year-on-year; the revenue from telecommunications business increased by 3.2% year-on-year. The growth rate increased by 3.2 percentage points year-on-year, and business income from cloud computing, big data, data center, and Internet of Things grew rapidly. Investment in new information infrastructure represented by 5G has increased. In the first half of the year, 257,000 5G base stations were newly built, reaching 410,000 as of the end of June.

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