SCIO briefing on China's economic performance in April 2025

Jinan Times APP:

Has the macro policy package adopted in the first quarter begun to stimulate economic growth in April? How would you assess the overall economic performance in April? Thank you.

Fu Linghui:

Thank you for your questions. There has been considerable interest in April's economic performance. Overall, in April, the international environment became more complex and severe, external shocks increased, and the difficulty of sustaining a stable economic operation increased. Facing the rapidly changing and complex situation, under the strong leadership of the CPC Central Committee, all regions and departments conscientiously implemented the decisions and deployments of the CPC Central Committee and the State Council, accelerated the implementation of more proactive and effective macro policies, strengthened the domestic cycle, and effectively responded to external shocks. As a result, the economy withstood pressure and maintained stable growth, continuing the trend of improvement. When I was reporting the main indicators of economic performance for April, everyone could understand this situation, which fully demonstrates the strong resilience and resistance of our economy. Based on key economic indicators, the following features can be observed:

First, production supply grew relatively quickly. In terms of industry, the combined effect of macro policies continued to release, and industry maintained relatively fast growth. In April, the value-added of industrial enterprises above the designated size increased by 6.1% year on year, which is relatively fast in terms of monthly growth rate since last year. Driven by intensified and expanded "two new" policies and industrial upgrading, the equipment manufacturing industry continued to grow rapidly, with its value-added increasing by 9.8% year on year in April. Its contribution rate to the growth of industries above designated size reached 55.9%. In terms of the service industry, under the influence of policies to expand domestic demand, it maintained a stable growth. In April, the service industry production index increased by 6% year on year, marking the second-highest monthly growth rate so far this year. The ongoing digital transformation, coupled with increased travel and transportation activities, has contributed to steady growth in information services, business services and related sectors. In April, the production indexes of information transmission software and IT services and leasing and business services increased by 10.4% and 8.9%, respectively, both significantly faster than the growth of the entire service industry.

Second, domestic demand expanded steadily. In terms of consumption, the policy to promote trade-in of consumer goods continued to show results, and market sales maintained steady growth. In April, total retail sales of consumer goods rose by 5.1% year on year. Sales of goods under the trade-in policy grew significantly, playing a notable role in supporting overall retail growth. Fueled by holiday and spring consumption, service-related retail sales maintained steady expansion. In the first four months, the retail sales of services grew by 5.1% year on year. In terms of investment, the effects of the policies related to major national strategies and the enhancement of security capacity in key areas ("two major initiatives") and large-scale equipment renewals and trade-in of consumer goods ("two new initiatives") have continued to emerge, with the scale of investment steadily expanding. From January to April, fixed-asset investment rose by 4% year on year. Driven by large-scale equipment renewals, investment in the purchase of equipment grew by 18.2% year on year from January to April, contributing 64.5% to the overall growth in investment.

Third, foreign trade demonstrated resilience. Despite rapidly changing international conditions and mounting external shocks, China stepped up efforts to diversify its foreign trade, actively expanded trade with countries participating in the Belt and Road Initiative (BRI), and sustained steady growth in foreign trade, demonstrating strong resilience. From January to April, the total value of imports and exports of goods increased by 2.4% year on year, 1.1 percentage points higher than in the first quarter. Trade with BRI partner countries rose by 3.9%, up by 1.7 percentage points from the first quarter. Exports of electromechanical products maintained robust growth, increasing by 9.5% year on year in the first four months.

Fourth, the employment situation remained stable overall. China's stable economic growth and the expansion of new growth drivers, coupled with strengthened policies to support employment and entrepreneurship among key groups, contributed to overall employment stability. In April, the surveyed urban unemployment rate stood at 5.1%, down 0.1 percentage point from the previous month, marking the second consecutive month of decline. From January to April, the average surveyed urban unemployment rate was 5.2%, unchanged from the same period last year.

Fifth, new quality productive forces continued to grow. Support for innovation continued to increase, and high-tech industries maintained rapid growth. In April, the value added of high-tech manufacturing enterprises above designated size grew by 10% year on year. Specifically, the value added of aerospace equipment manufacturing and integrated circuit manufacturing rose by 21.4% and 21.3%, respectively. The driving role of "AI Plus" was further strengthened, and the digital industry thrived. The value added of large-scale digital product manufacturing rose by 10% in April. The green and low-carbon transition advanced steadily, and the new energy industry grew rapidly. In April, the output of new energy vehicles (NEVs) and charging piles increased by 38.9% and 43.1%, respectively.

Overall, in April, despite mounting external shocks, China's economy remained stable thanks to its solid foundation, multiple strengths, strong resilience and huge potential. With well-coordinated macro policies and proactive responses across all sectors, the national economy withstood challenges and operated steadily, while the quality of development continued to improve. This further strengthened our confidence and capacity to tackle various risks and challenges. That being said, we must also recognize that the international environment remains highly uncertain, with multiple overlapping risks, and the foundation for the domestic economic recovery still needs to be consolidated. In the next stage, we must thoroughly implement the decisions and plans of the CPC Central Committee and the State Council, adopt more proactive and effective macro policies, and focus on stabilizing employment, enterprises, markets and expectations. We will work solidly to promote high-quality development, strengthen the domestic economic circulation, and drive sustained and sound economic growth. Thank you.