High-value-added industries are beginning to widen their role in China’s economy, new data shows, after the sector slumped during the first half of the year.
The New Economy Index run jointly by Caixin rose to 30.6 last month from 29.2 in June, meaning emerging industries such as biotechnology and high-tech manufacturing contributed 30.6% of total input materials to make goods and services. This marks the first rise in the gauge in four months.
The index defines a new-economy industry as labor- and technology-intensive with a low ratio of fixed capital and rapid, sustainable growth in a sector strategically important for the government.
Of the 10 industrial categories included in the index, the IT sector contributed the most to the reading at 13.5%. This was followed by biotechnology at 4%, which was also the fastest-growing industry.