China's Manufacturing Gains Momentum Driven by Tech and Equipment

China's manufacturing sector is off to a strong start in 2024, with key segments experiencing significant growth. From January to February, the value added by large equipment manufacturers jumped by 8.6% year-over-year, while high-tech manufacturing rose by 7.5%. 

Within high-tech manufacturing, the surge was particularly impressive for the semiconductor industry. The production of specialized equipment for making semiconductor devices skyrocketed by 41.2%, while integrated circuit manufacturing itself grew by a robust 21.6%. This indicates a strong focus on domestic chip production and supporting infrastructure. 

The growth wasn't limited to semiconductors. Intelligent unmanned aerial vehicle (UAV) manufacturing also displayed strong momentum, with an increase of 18.2% with growing market for drones for various applications, such as logistics and surveillance. 

Several key industries fueled China's impressive manufacturing start in 2024. Electronics, railways, shipbuilding, aerospace, and instrumentation all saw double-digit growth in added value, exceeding December's figures by a significant margin. Automobiles and instruments continued their positive trend with solid growth. 

Green products also saw significant growth, particularly in new energy vehicles and production of materials used in the solar industry, like ultra-white glass and silicon, also surged. 

A positive sign emerged with a 3.6% rebound in industrial export delivery value for the first two months of 2024, reversing the previous eight months of decline. Export growth accelerated in eight out of ten major export industries, including railways, shipbuilding, and aerospace. the At the same time, consumer goods industry rebounded from a decline in December to a 4.0% growth rate, driven by improving overseas demand.