(Yicai) Oct. 9 -- China has released new growth stabilization measures for 10 major industries, shifting to high-quality and efficient growth from quantitative growth, and putting emphasis on tackling involution-style competition and inefficiency.

The measures set specific targets for the steel, nonferrous metals, petrochemical, chemicals, building material, machinery, automobile, electrical equipment, light industry, and electronic information manufacturing industries, which account for about 70 percent of large-scale industrial output, according to the Ministry of Industry and Information Technology.

The targets include an average annual increase of 5 percent in added value for the petrochemical, chemical, and nonferrous metal industries and an average annual revenue growth of 6 percent for the electrical equipment industry in 2025 and 2026, and an about 3 percent growth to about 32.3 million units in the production and sales of autos this year, with new energy vehicle sales expected to climb 20 percent to 15.5 million units.

Compared to those released in 2023, the latest measures place greater emphasis on structural optimization and medium-to-long-term high-quality development, said Cai Wei, chief strategy officer at Klynveld Peat Marwick Goerdeler China Advisory. This is reflected in the efforts to boost both supply and demand and the management of low-price competition, he added.

To expand demand in the electrical equipment and building material industries, the measures proposed to ensure domestic demand while exploring international markets. For the light industry, they suggested creating new growth engines around consumers’ core interests, such as health, elderly care, childcare, home furnishings, and cultural tourism, and increasing the supply of smart home appliances and furniture.

Regarding supply optimization, the petrochemical and chemical industries’ growth stabilization measures expressed support for key product breakthroughs in areas such as electronic chemicals and high-end polyolefins.

The machinery industry’s measures outlined five goals, including enhancing industrial innovation capabilities and strengthening the resilience and competitiveness of the supply chain.

The measures for the steel, electronic information manufacturing, and automotive industries have emphasized the need to reduce unfair competition. Prices of new energy metals, such as lithium, silicon, and cobalt, have experienced fluctuations, harming the healthy development of the real economy, said Ge Honglin, president of the China Nonferrous Metals Industry Association. He urged these industries to strengthen self-discipline and avoid irrational behaviors.

The measures for the electronic information manufacturing industry emphasized the need to regulate low-price competition for products such as photovoltaics in accordance with the law. They called for the orderly regional planning of the solar and lithium battery industries and provided guidance for local authorities to assess their production capacity.

For the automotive industry, the measures clearly stated the necessity to enhance cost investigation and price monitoring, urging key carmakers to fulfill their commitments regarding supplier payment terms.

Editor: Futura Costaglione