Xi urges China to strengthen advanced manufacturing amid weak domestic demand

Xi said advanced manufacturing should provide “strong support” for advancing Chinese modernization, the state-run Xinhua news agency reported.

His instructions were conveyed at a national conference on advanced manufacturing held in Beijing on Wednesday and Thursday.

He urged authorities to pursue smart, green and integrated development and make China’s industrial supply chains more self-reliant and resilient.

Xi also called for faster development of a modern industrial system centered on advanced manufacturing and stronger foundations for the real economy, according to Xinhua.

The push comes as recent economic data point to weaker domestic demand. China’s retail sales grew just 0.4% year-on-year in August, while fixed-asset investment fell 7.2%.

The unemployment rate rose to 5.3% in August, while industrial production increased 5.2%, highlighting stronger factory activity despite weakness in consumption and investment.

Lynn Song, chief China economist at ING, said consumption and investment remained subdued because of weak domestic demand, while high-tech industries and sectors benefiting from external demand continued to perform relatively strongly.