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2.3 The Industrial Profit Growth Declined Sharply, and Eliminating Backward Production Capacity Achieved Certain Progress

In 2014, the profit of the industrial enterprises abovementioned grew by 3.3 %, a decrease of 8.9 percentage points from the previous year. Among this, the mining industry's profits fell by 23 %, a decrease of 2.0 percentage points from the previous year; the profit of goods manufacturing industry, represented by food, textiles and garment, tobacco, and so on, grew by 5 %, an increase of 0.2 percentage points over the previous year. The profit of equipment manufacturing and high-tech manufacturing industries grew strongly, 0.9 % and 12.7 %, an increase of 4.1 % and 6.7 %, respectively, over the previous year's results (Fig. 2.6).

In 2014, the elimination of backward production capacity in industries with excess capacity continued to progress: the elimination of backward steel by

35.67 million tons, cement by 81.25 million tons, and plate glass by 35.67 million weight boxes accounted for 3.1 %, 3.3 %, and 4.5 % of the total output, respectively (Fig. 2.7).

To some extent, this shows that China's manufacturing industry is adapting to the change of market environment through structural adjustments and the development of equipment manufacturing and high-technology manufacturing industries with accelerated high added value, eliminating backward production capacity, continuing to make progress in industries with excess capacity, and

Fig. 2.6 Changes in profit growth rate of part of the above industrial enterprises (In this paper, the equipment manufacturing industry includes general equipment manufacturing, special equipment manufacturing, automobile manufacturing, electrical machinery and equipment manufacturing, fabricated metal products, and other industries; the high-technology industry includes pharmaceutical manufacturing; railway, shipbuilding, aerospace, and other transport equipment manufacturing; computer, communications, and other electronic equipment manufacturing; instrument manufacturing; and other industries) (Data source: CEIC)

Fig. 2.7 The ratio of quantity of some industries' backward production capacity in industrial production (Data source: Wind Information)

upgrading the industrial structure. The new economic development space is showing signs of positive results.[1]

  • [1] In addition, new types of business such as electronic commerce and mobile communications and strategic emerging industries that mainly depended on new energy, biological medicine, and environmental protection technology also develop quickly
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