MIIT Rolled Out Plans for Stabilizing Growth in Ten Key Industries

The Ministry of Industry and Information Technology (MIIT) launched growth stabilizing plans for 10 key industries in Aug-Sep 2023, echoing multiple macro policies released since July to tackle the economic pressure. Industries include steel, non-ferrous, petrochemical & chemical, building materials, machinery, automobiles, power equipment, light industry, and electronics manufacturing, which together account for about 70% of China's industrial growth engine.

SUMMARY

The key industry growth stabilization plan focused on both supply and demand, promoting structural optimization. The plans seek to restore and expand demand in key areas, focusing on promoting investment, driving consumption, and stabilizing exports.
Stabilizing growth is the primary task of China's economic work in 2023.
The Petrochemical industry is leading with investment expansion as a measure of stable growth, promoting the completion of more than five major petrochemical projects that are under construction by the end of 2024. It is also required to accelerate the demonstration of major petrochemical projects, promoting the commencement of a batch of oil-to-petchem conversion projects; while also enhancing technology reform and energy-saving & carbon reduction transition efforts.

The top measure to stabilize growth in the petrochemical industry is to increase investment. This includes promoting the completion of more than five major petrochemical projects that are under construction by the end of 2024. Current key projects under construction include Shandong Yulong Petrochemical, Liaoning Panjin Fine Chemicals, ExxonMobil Huizhou Ethylene, BASF Zhanjiang Ethylene, Zhenhai Petrochemical Phase II Expansion, and SABIC Gulei Ethylene.

Based on this, the Plan also called for demonstrations of new mega petrochemical projects, while pushing forward a batch of Oil-to-petchem conversion projects; alongside increasing efforts in technological transition, energy-saving, and carbon-reducing renovations. Measures to reach benchmark energy efficiency levels and Grade A-level in environmental protection performance are needed, and outdated capacities should be phased out. Regarding fiscal policy, optimization will be applied to consumption tax refund for naphtha used as raw materials.

Main Targets for Stabilizing Growth Plan (Raw Material Industry)

Source: MIIT, China NBS, GL Consulting; Note: * The growth rates of industrial value-added in previous years are for enterprises above the scale.

Main Targets for Stabilizing Growth Plan (Manufacturing Industry)

Automobile manufacturing

The Plan suggests strengthening overseas cooperation on low-carbon issues through entire industry chains with key countries and regions, efforts should be made to promote mutually recognized carbon emission and carbon footprint accounting systems, creating a better overseas development environment for Chinese automobile producers.

Source: MIIT, China NBS, GL Consulting; Note: * The growth rates of industrial value-added in previous years are for enterprises above the scale.

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Written by the GL Consulting team (Mysteel's consultancy arm on energy transition): glconsulting@mysteel.com

Edited by Navy Liu: liuchuanjun@mysteel.com