China’s Industrial Sector Off to a Strong Start in Q1 2025
China’s industrial sector is booming, showing robust growth in the first quarter of 2025. According to the Ministry of Industry and Information Technology (MIIT), value-added output from major enterprises rose by 6.5 percent year-on-year, accounting for 36.3 percent of the country’s overall economic expansion.
This growth rate marks an acceleration of 0.8 percentage points from the previous quarter, signaling further momentum in the world’s second-largest economy. Key industries such as electronics, automobiles, and electrical machinery led the surge, highlighting China’s continued industrial strength.
Tech-Driven Transformation Accelerates
China is rapidly advancing its technological capabilities, integrating artificial intelligence (AI) and smart manufacturing into industrial upgrades. Over 30,000 smart factories, including 230 top-tier “excellence-level” facilities, now operate nationwide, covering 80 percent of key manufacturing sectors. These cutting-edge facilities have reduced product development cycles by 28.4 percent and boosted efficiency by 22.3 percent. AI-powered innovations, such as smart phones, computers, and televisions, are increasingly popular among consumers.
Exports and Domestic Demand Stay Strong
Despite global trade uncertainties, China’s industrial exports rose by 6.9 percent, with machinery and electronics exports up 8.7 percent. Domestic demand also expanded, driven by policies promoting consumption. Automobile sales reached 7.47 million units, up 11.2 percent year-on-year. New energy vehicles experienced even more remarkable growth, with sales surging 47.1 percent to over 3 million units.
Private industrial investment grew at double-digit rates, and the number of major industrial firms continued to rise, reflecting improving business confidence. The software and information technology services sector also saw significant growth, generating nearly 1.9 trillion yuan (approximately $263 billion) in revenue in the first two months of the year.
Resilience Amid Global Challenges
MIIT Chief Engineer Xie Shaofeng acknowledged external risks, including geopolitical disruptions to global supply chains. However, he emphasized China’s strengths—a complete industrial system, vast domestic market, and advanced infrastructure—as buffers against instability. These factors position China to maintain steady growth and continue its role as a key player in the global economy.
