Sales revenue of China's traditional industries up 5.4 pct in first 10 months

The VAT invoice data indicates that sales revenue from traditional industries such as clothing, furniture, and home appliances increased by 5.4 percent year on year in the first 10 months this year, driven by a series of tax reduction policies, according to the State Taxation Administration (STA) on Monday.

Data from the STA shows that in the first three quarters of this year, traditional industries in China saw a 21.5 percent year-on-year increase in tax incentives for technological innovations.

In the first three quarters, traditional export-oriented industries such as clothing, furniture, and home appliances, traditional material industries like chemical fibers, rubber and plastics, as well as traditional livelihood industries including food manufacturing and cultural and sports entertainment products, saw year-on-year increases in tax incentives for technological innovation of 20.5 percent, 24.5 percent, and 15.5 percent, respectively, according to tax data.

With the support of tax reduction policies, traditional industries have achieved steady sales revenue growth by upgrading equipment and developing new products.

In Dazhou City of southwest China's Sichuan Province, a textile company has used funds saved from tax breaks for micro and small enterprises to upgrade its production lines.

The digital upgrades enable over 400 smart high-speed water-jet looms to operate automatically around the clock. Any malfunctions can be quickly detected and resolved by maintenance personnel using code instructions, significantly boosting production efficiency.

"We have installed a 'digital brain' on our production lines, which has increased production efficiency by 30 percent and reduced waste by 10 percent. With the help of these technological innovations, our sales have exceeded 100 million yuan (about 13.7 million U.S. dollars) this year," said Luo Li, manager of the general affairs department of this textile company.

Chen Peng, chief of the Legal Affairs Section, Dazhou Taxation Bureau of the STA, said many traditional manufacturing companies have been benefiting from tax reduction schemes this year.

"Since the beginning of this year, 660 local garment factories have increased their sales to over 2.28 billion yuan (about 313.0 million U.S. dollars) after equipment upgrades and technological innovations. Altogether, they have benefited from tax breaks, including additional deductions for research and development expenses and tax reductions for micro and small enterprises, totaling 5.66 million yuan (about 777,100 U.S. dollars)," Chen said.

Sales revenue of China's traditional industries up 5.4 pct in first 10 months

The current economic performance indicates that China's GDP is expected to grow by around five percent this year, reinforcing its role as a key engine of global economic growth, said an official of the Office of the Central Committee for Financial and Economic Affairs.

The comments came after the annual, tone-setting Central Economic Work Conference, which was held in Beijing from Dec 11 to 12, where the key economic tasks for 2025 were laid out.

The new quality productive forces have developed steadily, with significant advancements in scientific and technological innovation, particularly in areas such as integrated circuits, artificial intelligence, and quantum technology. The intelligent and digital transformation of traditional industries has progressed continuously, while the pace of green and low-carbon transformation has notably accelerated, the official said.

Reform and opening-up efforts have continued to deepen, with major initiatives such as raising the retirement age and establishing a unified national market advancing at an accelerated pace. The high-quality development of the Belt and Road Initiative has been steadily promoted, yielding positive outcomes in terms of high-level opening-up.

Risks in key areas have been mitigated in an orderly and effective manner. A series of measures have been implemented to stabilize the real estate market, resulting in consecutive year-on-year and month-on-month increases in commercial housing sales in October and November. Efforts to address local government debt have been proactive, while risks in small and medium-sized local financial institutions have been steadily alleviated through reforms. The country has made solid efforts to ensure people's wellbeing, with stable employment and the sustained consolidation of poverty alleviation achievements.

China's 2024 economic growth expected to reach about 5 pct: official