Based on key indicators, the Chinese economy demonstrated a mixed yet resilient performance in August, characterized by stability in production, employment, and prices, alongside rapid growth in emerging industries and foreign trade.
The first pillar of stability, production, remained steady despite significant external pressures. Global oil market volatility, driven by geopolitical tensions in the Middle East, has tightened the supply of crucial raw materials. As a major global energy importer and manufacturing hub, China faced considerable challenges in securing supply chains. However, the nation responded by boosting domestic energy output, diversifying import sources, and leveraging the benefits of its ongoing green energy transition. This comprehensive approach ensured adequate energy supply, underpinning consistent industrial activity. In August, the value-added output of large industrial enterprises grew by 5.2% year-on-year, while the service production index rose by 4.1%, both maintaining a stable trajectory.
The second area of stability was employment, which benefited directly from stable production. Steady corporate output helped maintain labor demand. Concurrently, the service sector, particularly rapidly expanding fields like information services and software, created substantial job opportunities. The national urban surveyed unemployment rate stood at 5.3% in August, up slightly by 0.1 percentage points from July, primarily due to the seasonal influx of new graduates into the labor market. Encouragingly, the unemployment rate for the core working-age population (30-59 years) held steady at 3.9%, unchanged from both the previous month and the same period last year. While some industries saw year-on-year job reductions due to structural adjustments, overall manufacturing employment remained stable. Notably, employment in information transmission, software, and IT services increased significantly. The accommodation and catering sectors also continued to expand their workforce, supported by a thriving domestic tourism and leisure market, making a vital contribution to overall job market stability.
The third stabilization was seen in prices, a favorable outcome facilitated by steady production. While global geopolitical conflicts have driven up commodity prices and inflation in many advanced economies, China took proactive measures. These included stabilizing market supply and boosting production of essential goods, which effectively kept price pressures in check. In August, the consumer price index (CPI) rose by a modest 0.8% year-on-year, and the producer price index (PPI) increased by 3.8%, a level considered relatively stable by international comparison.
Turning to the two accelerations, the first highlights the rapid growth of new and emerging industries. Driven by the integration of technology and industry, the green transition, and global demand for artificial intelligence and clean energy, sectors like high-tech manufacturing and digital products are flourishing. In August, the value-added output of high-tech manufacturing and digital product manufacturing surged by 16.7% and 15.7% year-on-year, respectively. These new growth engines now contribute over 60% to the growth of large industrial enterprises, a share that continues to rise. The production index for information transmission, software, and IT services grew by 9.6%, contributing more than 20% to the overall growth of the service production index.
The second acceleration pertains to a rapid expansion in foreign trade. Leveraging a comprehensive industrial system, improved technological capabilities, and enhanced product quality, China has continued to expand economic exchanges globally on a mutually beneficial basis. This approach has also involved actively increasing imports to foster balanced trade growth. As a result, the total value of goods imports and exports grew by a remarkable 19.8% year-on-year in August. Exports of green products, such as new energy vehicles and lithium batteries, grew particularly fast, supporting the global green transition. On the import side, significant growth was recorded from developing nations in ASEAN, Africa, and Latin America, providing new opportunities for industrial development in these regions.
In summary, despite a turbulent global environment and numerous uncertainties, the Chinese economy has overcome difficulties to maintain smooth operations. With its new growth drivers strengthening, the economy demonstrates significant resilience and vitality, positioning itself as a crucial engine and stabilizer for global development. Looking ahead, the focus will be on implementing central government decisions, strengthening counter-cyclical adjustments, expanding domestic demand, optimizing supply, deepening reforms, and fostering innovation to steer the economy towards sustained, high-quality progress.