China’s High-Tech Industry Expands, Production Remains Stable Despite Seasonal Challenges
Beijing. Despite seasonal slowdown and insufficient market demand, China’s manufacturing sector demonstrated resilience in January. According to official data, although overall activity declined, factory output remained stable and growth in high-tech industries continued.
Data from the National Bureau of Statistics (NBS) show that China’s Manufacturing Purchasing Managers’ Index (PMI) fell to 49.3 in January, down 0.8 percentage points from the previous month. A reading above 50 indicates expansion, while a reading below 50 signals contraction.
Despite the overall contraction, factory output continued to expand. The production sub-index stood at 50.6, indicating steady growth in manufacturing output. However, the new orders index dropped to 49.2, signaling a slowdown in market demand.
By sector, industries such as agricultural and auxiliary food processing, railway, shipbuilding, and aerospace equipment manufacturing recorded production and new orders indices above 56.0, reflecting relatively strong supply and demand.
In contrast, sectors including petroleum, coal and other fuel processing, as well as automobiles, recorded scores below 50, indicating weakening demand and declining production.
In January, rising raw material prices led to improvements in price indicators. The input cost index and the factory-gate price index rose to 56.1 and 50.6 respectively, up by 3.0 and 1.7 percentage points from the previous month.
Notably, according to NBS chief statistician Huo Lihui, the factory-gate price index exceeded the 50 mark for the first time in 20 months, signaling an overall improvement in price conditions.
Large enterprises continued to provide support, with their PMI remaining in expansion territory at 50.3. Meanwhile, the PMI for medium- and small-sized enterprises declined to 48.7 and 47.4 respectively.
The high-tech manufacturing sector emerged as a bright spot, with a PMI of 52.0, remaining above a relatively strong level for the second consecutive month. The PMI for equipment manufacturing stood at 50.1 in January, also indicating expansion. Meanwhile, the PMI for consumer goods industries and high energy-consuming industries fell to 48.3 and 47.9 respectively.
Business sentiment remained optimistic, with the production and business activity expectations index staying in expansion territory at 52.6. Industries such as agricultural and auxiliary food processing and food and beverage manufacturing recorded scores above 56.0 for the second consecutive month, reflecting strong confidence in near-term prospects.
Earlier official data showed that China’s economy achieved 5 percent growth in 2025 despite external shocks and domestic challenges, meeting its set target and maintaining a relatively strong pace by global standards.
As Saturday’s data indicate, China continues to face a complex situation marked by a clear imbalance between supply and demand. To address this challenge, China unveiled a comprehensive policy package earlier this month aimed at boosting consumption and energizing private investment through coordinated fiscal and financial measures.
The country’s top economic planner has also pledged to formulate a strategic implementation plan to expand domestic demand for the 2026–2030 period.
