China's industry ministry urges officials to look beyond numbers in economic assessment

BEIJING — China's industry ministry called for "looking beyond the surface of data" in analysing economic operations in a meeting with local industry officials on Wednesday (June 17), an official readout showed.

The meeting, chaired by Vice Industry Minister Xin Guobin, took place a day after official economic data showed that growth in industrial output in May had beaten expectations.

"We should strengthen situation analysis and policy reserves, accurately analyse the actual conditions and trend changes in economic operations by looking beyond the surface of data," said the readout released by the Ministry of Industry and Information Technology (MIIT).

China set its 2026 economic growth target at 4.5 to five per cent, slightly lower than the five per cent pace achieved last year, signalling greater room to address industrial overcapacity and rebalance the economy.

Data showed that economic growth lost some steam in the second quarter, as domestic demand remained lukewarm and fixed-asset investment dropped. 

But a global AI boom has lifted demand for Chinese-made electronics and other AI-related goods, offering a boost to advanced manufacturing sectors and a buffer against shocks from the Iran war.

Separate data showed that factory activity stalled in May as new export orders contracted and input costs kept rising.

At the meeting on Wednesday, the MIIT called on officials to promote the stable operations of the industrial economy in the second quarter and strive to meet annual targets.

The ministry highlighted the need for balancing supply and demand in the economy, and urged officials to "plan well for energy supply and emergency disaster prevention and mitigation during the peak summer season".

Industry officials from 11 provinces, including manufacturing powerhouses Guangdong and Jiangsu, attended the meeting, according to the readout.

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