MNI China Press Digest March 5: PMI, Energy, Economic Reform

Highlights from Chinese press reports on Thursday:

• China's manufacturing PMI continued to decline in February, influenced by the Spring Festival holiday and economic downward pressure, said Zhang Liqun, a special analyst at the China Federation of Logistics and Purchasing, after the PMI came in at 49.0%, down 0.3 percentage points from the previous month. Zhang said authorities should significantly increase government investment in public goods, expand demand and boost corporate orders. Wen Tao, an expert at the China Logistics Information Center, said factories and construction sites are expected to fully resume operations as the impact of the Spring Festival holiday fades and temperatures gradually rise nationwide in March. (Source: Yicai)
• China’s energy development still faces several major challenges, including structural shortcomings in energy supply that require further optimisation, said Yang Changli, a member of the CPPCC National Committee and chairman of China General Nuclear Power Group (CGN). To address these issues during the 15th Five-Year Plan period, authorities will prioritise green development, advance technological innovation and accelerate digital transformation, Yang said. Although the country maintains an energy self-sufficiency rate above 80%, its dependence on foreign oil and gas remains relatively high, posing challenges to the resilience and security of energy supply, Yicai said.

• Innovation-driven development will remain the central theme of China’s economy over the next five years, with private enterprises driving the advancement of new quality productive forces, said Shi Jinchuan, chairman at the Center for Private Economy Research. Shi said the 14th Five-Year Plan period was characterised by creative destruction, during which innovation disrupted old technologies. However, over the next five years, innovation outcomes will continue to accumulate and spread across industries, gradually allowing the gains to outweigh the disruption, he added. Dong Yu, executive vice president of the China Institute for Development Planning, said authorities will likely increase incomes for urban and rural residents through reforms in income distribution alongside measures to expand the overall economic pie. (Source: 21st Century Business Herald)