In mid-February 2026, CAAM and the China Automotive Power Battery Industry Innovation Alliance successively released relevant data on the auto and power battery markets for January 2026. According to CAAM’s analysis, in January 2026, the auto industry overall operated steadily, the passenger vehicle market declined somewhat, the commercial vehicle market continued its positive trend, the NEV market remained stable, and auto exports continued to grow....... SMM compiled the relevant data on the auto market and power battery market for January 2026 for readers’ reference. Automobiles CAAM: In January 2026, Auto Production and Sales Both Exceeded 2 Million Units, Production Edged Up YoY In January, auto production and sales totaled 2.45 million and 2.346 million units, respectively, with production up 0.01% YoY , while sales fell 3.2% YoY, down 25.7% and 28.3% MoM, respectively. CAAM: In January 2026, China’s NEV Production and Sales Reached 1.041 Million and 945,000 Units, Respectively, up 2.5% and 0.1% YoY In January, NEV production and sales reached 1.041 million and 945,000 units, respectively, up 2.5% and 0.1% YoY, respectively , with NEV sales accounting for 40.3% of total new vehicle sales. CAAM: Auto Exports Continued to Grow in January, NEV Exports Posted Rapid Growth In January, auto exports reached 681,000 units, up 44.9% YoY , down 9.5% MoM . NEV exports reached 302,000 units, up 100% YoY and 0.5% MoM ; traditional fuel vehicle exports reached 380,000 units, up 18.8% YoY , down 16.1% MoM. Regarding the auto market in January, CAAM said that the auto industry overall operated steadily in January, the passenger vehicle market declined somewhat, the commercial vehicle market continued its positive trend, the NEV market remained stable, and auto exports continued to grow. The main factors behind the market decline were: first, the transition and adjustment of the NEV purchase tax policy; second, car purchase subsidy policies in many regions were at the turn of the year; and third, some consumer demand was released ahead of schedule in 2025. In the first month of 2026, the country intensively introduced a series of policies benefiting both households and businesses to support livelihoods and economic development. Among them, the program of large-scale equipment upgrades and consumer goods trade-ins was smoothly and orderly carried forward, with various localities successively following up and issuing implementation details; the Work Plan for Accelerating the Cultivation of New Growth Drivers in Service Consumption focused on key areas such as automotive aftermarket services, stimulating market vitality. As relevant policies are further refined and implemented, this will help stabilize and rebound demand in the auto market and support the industry's steady operation. CAAM stated that the 15th Five-Year Plan period is a critical window for China's automotive industry to transition toward high-quality development, requiring the industry to improve quality and efficiency while maintaining stable market operations. Meanwhile, the CPCA also released January passenger vehicle market data. January retail sales in China's passenger vehicle market totaled 1.544 million units, down 13.9% YoY. Due to the complex market factors at play, the pattern of weaker sales in the first half and stronger sales in the second half has become more pronounced in recent years. Since 2020, low YoY retail growth in January has been relatively common, for example, -21% in 2020, 27% in 2021, -5% in 2022, -38% in 2023, 58% in 2024, and -12% in 2025. Therefore, the -13.9% reading in 2026 was a mid-range outcome amid the wild swings in January growth rates over the years. NEV side, January retail sales in the passenger NEV market were 596,000 units, down 20.0% YoY; January retail sales of conventional internal combustion engine passenger vehicles were 948,000 units, down 10% YoY. Export side, January passenger NEV exports reached 286,000 units, up 103.6% YoY . This accounted for 49.6% of passenger vehicle exports, up 12.5 percentage points compared to the same period last year. Of this, pure EVs accounted for 65% of NEV exports (67% in the same period last year), while A00+A0-class pure EVs, the core focus segment, accounted for 50% of pure EV exports (41% in the same period last year). As China's scale advantages in NEVs emerge and market expansion demand grows, more and more China-made new energy brands are going global, with their recognition outside China continuing to rise. Plug-in hybrids accounted for 33% of NEV exports (32% in the same period last year). Although they have recently faced some disruptions from external countries, exports of self-owned plug-in hybrids to developing countries have been growing rapidly, with bright prospects ahead. The CPCA stated that after the NEV purchase tax exemption policy, implemented since September 2014, officially ended at month-end December 2025, the NEV market entered a normal recovery period. Some consumers brought purchases forward to enjoy the policy dividend in December last year, resulting in a certain pull-forward effect in January. This was an expected short-term fluctuation and does not represent the market's long-term trend. Specifically, the characteristics of the January passenger vehicle market were as follows: First, January passenger vehicle producer exports hit a record high for the month, and passenger NEV exports also reached a historic January high, fully demonstrating the rising competitiveness of China's automotive industry in the global market and continued robust demand outside China; second, the retail pullback after the expiration of the vehicle purchase tax exemption was evident, while the share of high-end NEVs rose significantly, reflecting growing consumer demand for high-quality NEVs amid the consumption upgrade trend, which will help drive the industry's transition toward high-quality development; third, new vehicle launches in 2026 were steady, and with anti-involution efforts curbing disorderly price cuts, January NEV sales promotions remained at 10.1%, staying around 10% for five consecutive months. There was no vicious volume discount competition, which helped maintain market order; fourth, the historical pattern of internal combustion engine vehicles outperforming NEVs ahead of Chinese New Year continued again. In January, retail sales of internal combustion engine vehicles in China fell 10% YoY, pure EV retail sales fell 17.0% YoY, range-extended vehicles rose 0.8% YoY, and plug-in hybrids fell 31.2% YoY. As the pull-forward effect from last December weakens in the future, the NEV market is expected to return to a positive growth track; fifth, in January, the penetration rate of NEV retail sales in China was 38.6%, and the export penetration rate was 49.6%; sixth, in January 2026, exports of self-owned internal combustion engine passenger vehicles were 250,000 units, up 17% YoY, while self-owned NEV exports were 226,000 units, up 115% YoY. NEVs accounted for 47.5% of self-owned exports. In particular, the high growth of NEV exports in Europe and Southeast Asia marked the expanding influence of Chinese NEV brands in the international market, laying a solid foundation for future export growth. Power battery In January, China’s cumulative sales of power and ESS batteries reached 148.8 Gwh, up 85.1% YoY In January, China’s sales of power and ESS batteries totaled 148.8 Gwh, down 25.4% MoM , up 85.1% YoY . Of this, power battery sales were 102.7 Gwh, accounting for 69.0% of total sales, down 28.6% MoM and up 63.2% YoY; ESS battery sales were 46.1 Gwh, accounting for 31.0% of total sales, down 17.0% MoM and up 164.0% YoY. In January, China’s combined exports of power and ESS batteries were 24.1 Gwh, down 26.0% MoM and up 38.3% YoY , accounting for 16.2% of sales in the month. Of this, power battery exports were 17.7 Gwh, accounting for 73.3% of total exports, down 7.1% MoM and up 59.3% YoY; ESS battery exports were 6.4 Gwh, accounting for 26.7% of total exports, down 52.6% MoM and up 1.4% YoY. In January, China’s cumulative domestic power battery installations reached 42 Gwh, up 8.4% YoY In January, domestic power battery installations were 42 Gwh, down 57.2% MoM , up 8.4% YoY . Of this, ternary battery installations were 9.4 Gwh, accounting for 22.3% of total installations, down 48.6% MoM and up 9.6% YoY; LFP battery installations were 32.7 Gwh, accounting for 77.7% of total installations, down 59.1% MoM and up 8.1% YoY. In January, the performance of emerging automakers diverged in terms of YoY growth, with Leap Motor continuing to “lead the pack” and Xiaomi Auto’s January deliveries surpassing 39,000 units Statistics compiled by a CLS reporter on the January sales of 15 A/H-share listed automakers showed that 9 automakers achieved YoY growth, accounting for 60%. Higher NEV sales and expansion into overseas markets became important drivers supporting the overall growth of these automakers. SAIC’s January sales reached 327,000 units, up 23.94% YoY, returning to the top spot in sales. Its NEV segment continued to gain momentum. In January 2026, SAIC sold 85,000 NEVs, up 39.7% YoY, with sales volume ranking among the industry leaders. As for second-ranked Geely, its January sales reached 270,200 units, up 1.29% YoY and up 14.08% MoM, making it the only enterprise to achieve positive growth both YoY and MoM. Geely Automobile said, “2026 will be a major product year for Geely Automobile. The company will launch 1-2 brand-new products each quarter, covering multiple new hybrid car models and a new generation of methanol-hydrogen energy car models, in a full push toward its annual sales target of 3.45 million units.” On exports, Geely set its 2026 export sales target at 640,000 units, up more than 50% YoY. As for the NEV startup market in January, judging from the January delivery volumes released by major automakers, all major automakers saw delivery declines of varying degrees MoM versus December 2025. Among them, Leap Motor continued to lead in 2026, ranking first among NEV startups with deliveries of 32,059 units, up 27.37% YoY and down 46.94% MoM. To stabilize the market, Leap Motor accelerated channel development, recently adding 85 stores. As of January 5, its total number of stores nationwide reached 1,068, ensuring that more users could conveniently experience Leap Motor’s products and services. On February 2, Leap Motor announced new car purchase benefits for February: a New Year cash gift of 11,000 yuan in cash discounts, a New Year loyalty gift of up to 10,000 energy points, and a New Year financing gift of up to five years of zero interest. Li Auto regained momentum in January, ranking just behind Leap Motor with 27,668 units, down 7.55% YoY and down 37.47% MoM. As of January 31, 2026, Li Auto’s cumulative historical deliveries reached 1,567,883 units. On February 5, Li Auto Chairman Li Xiang said on a social media platform that Li Auto would launch the all-new Li L9 in 2026, “not just a car, but also a pioneering work of an embodied AI robot.” Cailian Press reporters learned that Li Auto had established an AI company organizational structure for this purpose, including teams for computing power and data, foundation models, and software and hardware bodies, to build system capabilities for “creating silicon-based humans.” As of January 31, 2026, Li Auto had 547 retail centers nationwide, covering 159 cities, as well as 547 after-sales repair centers and authorized service centers, covering 221 cities. Li Auto had put into use 3,966 Li Auto supercharging stations nationwide, with 21,945 charging piles. NIO delivered a total of 27,182 units in January, up 96.08% YoY and down 43.53% MoM. On the afternoon of February 1, NIO completed delivery of the 60,000th all-new ES8 in Guangzhou, taking 134 days. On the same day, the NIO brand launched seven-year ultra-low-interest car purchase plans for the new ET5, ET5T, ES6, and EC6, while the ONVO brand launched the same for the ONVO L60 and L90, featuring a 0.49% annualized rate for seven years, zero financial service fees, and zero penalties for early repayment. The firefly brand launched a seven-year ultra-low-interest car purchase plan, with buyers who place orders receiving a Year of the Horse Chinese New Year Adventure Gift Pack. XPeng Motors delivered 20,011 new vehicles in January, down 34.07% YoY and down 46.65% MoM. In January, the XPeng X9 continued to sell strongly, with monthly deliveries of 4,219 units, up 413.9% YoY. As of month-end January, its cumulative deliveries reached 51,897 units, making it the fastest car model among China's emerging MPV makers to surpass 50,000 deliveries. In the same month, pre-orders opened for the 2026 XPeng X9 BEV version. As the “world’s longest-range 5C pure-electric large seven-seater,” the new model was fully aligned with the hot-selling super extended-range version in terms of product competitiveness. From now until the new model goes on sale, a 2,000-yuan deposit can be used to offset 7,000 yuan of the car purchase price. In addition, according to data from Xiaomi Auto’s official Weibo account, Xiaomi Auto delivered more than 39,000 vehicles in January, even surpassing Leap Motor, which ranked first among emerging EV makers. On the same day, Xiaomi also announced car purchase benefits related to the Xiaomi SU7 and Xiaomi SU7 Ultra. All Xiaomi YU7 variants are eligible for “seven years of low interest”! A new low-monthly-payment option has been added, with down payments starting from 99,900 yuan and monthly payments from less than 2,000 yuan. Orders placed before 24:00 on February 28 also qualify for an optional “three years interest-free” plan, with down payments starting from 74,900 yuan and monthly payments as low as 4,961 yuan. At the same time, buyers can enjoy limited-time car purchase benefits of up to 66,000 yuan. Regarding store expansion progress, Xiaomi Auto said it added nine new stores in January, bringing its total to 484 stores across 139 cities nationwide; six more stores are expected to be added in February, with coverage expected to expand to two new cities, Jiangmen and Zhoukou; as of January 31, it had 270 service outlets nationwide, covering 159 cities across the country. As for BYD, the leader in EVs, its January sales reached 210,051 units, with cumulative NEV sales exceeding 15.3 million. BYD exported a total of 100,482 NEVs in January. Notably, there was also fresh news on BYD’s solid-state battery business. A CLS reporter learned from BYD’s Investor Relations Department that BYD is exploring multiple technology pathways in the solid-state battery field, taking sulphide solid-state batteries as an important technical direction, and has achieved breakthroughs in battery life and fast charging, with small-scale production expected in 2027. In the sodium-ion battery field, it is already at the development stage of its third-generation product technology platform and has developed sodium-ion battery products capable of 10,000 cycles. The mass-production period will be determined based on actual market conditions and client demand. Cui Dongshu, Secretary General of the CPCA, commented that the recent weakness in January auto retail sales was reasonable, given that the vehicle purchase tax exemption policy had just ended and only some provinces and cities had launched trade-in and renewal subsidy policies, while mid-January last year was a peak sales period before Chinese New Year, and the holiday timing shift also weighed on January auto retail performance. It was expected that as local detailed rules for replacement subsidies were gradually refined and subsidy application channels became smoother, together with the gradual release of potential car purchase demand before the Chinese New Year holiday, the auto retail market would gradually recover and improve. At the Beginning of 2026, National and Local Governments Across Many Regions Mentioned Policies to Promote Auto Consumption; More Than 20 Regions Introduced New Trade-in and Car Purchase Subsidy Policies After entering 2026, as national subsidies were scaled back, consumer-stimulus policies to promote consumption were being rolled out intensively at both the national and local levels through multiple measures. According to incomplete statistics, more than 20 provinces, municipalities, and autonomous regions, including Beijing, Shanghai, Chongqing, Zhejiang, and Sichuan, had issued detailed rules for activities such as automobile trade-in, retirement and renewal, or car purchase subsidies. On December 31, 2025, the general offices of eight departments including the Ministry of Commerce issued the Implementation Rules for Automobile Trade-in Subsidies in 2026, which officially took effect on January 1, 2026. It mentioned that in 2026, a one-time subsidy would be granted to individual consumers who retired gasoline passenger vehicles registered on or before June 30, 2013, diesel and other fuel passenger vehicles registered on or before June 30, 2015, or passenger NEVs registered on or before December 31, 2019, and purchased either a passenger NEV included in the Ministry of Industry and Information Technology’s Catalog of NEV Models Eligible for Vehicle Purchase Tax Reduction and Exemption or a fuel passenger vehicle with an engine displacement of 2.0 liters or below. For those who retired the above qualified old vehicles and purchased a passenger NEV, a subsidy of 12% of the new vehicle’s selling price (tax included, the same hereinafter) would be provided, with the subsidy amount (rounded up to the nearest yuan, the same hereinafter) capped at 20,000 yuan; for those who retired the above qualified fuel passenger vehicles and purchased a fuel passenger vehicle with an engine displacement of 2.0 liters or below, a subsidy of 10% of the new vehicle’s selling price would be provided, with the subsidy amount capped at 15,000 yuan. The CPCA analyzed that the key words for the 2026 trade-in policy were not “further escalation,” but “more sustainable, more balanced, and more supervisable.” Changing the subsidy amount to a proportion of vehicle price with a cap was intended to ensure more balanced use of subsidies and avoid situations in which quotas were consumed too quickly in the early stage, forcing subsidies to be suspended later. The adjustment to the calculation method would also have a certain impact on the structure of the automobile market, among which the stimulus for low-priced car models was significantly weakened, while car models priced at 160,000-200,000 yuan could fully enjoy the subsidy, making the policy more friendly to replacement purchases for upgrade demand. Producers needed to meet market demand through product competitiveness and financial solutions, with greater emphasis on “long-term value” such as driving range, intelligence, and recharging experience, rather than relying on one-off subsidies. The China Automobile Dealers Association also stated in an article that the 2026 automobile trade-in policy strengthened overall work coordination and promoted the efficient direct delivery of subsidy funds. This would allow limited funds to benefit more consumers, especially by meeting the needs of rigid-demand groups. The scope of eligible car owners is expected to be further expanded, with support more clearly focused on encouraging the phaseout of old vehicles and the purchase of energy-efficient vehicles and NEVs. Implementation is expected to emphasize the role of market mechanisms, making subsidies better aligned with actual demand. Procedures are clear and convenient, and supervision and management mechanisms are more robust. Overall, the policy is expected to continue stimulating consumer vitality and add new momentum to the transformation, upgrading, and high-quality development of the automotive industry. Since the beginning of 2026, according to incomplete statistics, multiple provinces and cities, including Shanghai, Beijing, Sichuan, and Shandong, have successively released detailed rules related to the automotive trade-in policy, continuously promoting local auto consumption: [Shanghai's 2026 Automotive Trade-In Policy Takes Effect, Maximum Subsidy 20,000 yuan] Shanghai's 2026 automotive trade-in policy has taken effect. Eight departments, including the Shanghai Municipal Commission of Commerce, jointly issued the Implementation Rules for the 2026 Shanghai Automotive Trade-In Subsidy Policy, officially launching subsidy programs for vehicle retirement and renewal and replacement renewal. Individual consumers can receive subsidies of up to 20,000 yuan. The policy has been implemented since January 1, 2026, and applications will be accepted until January 10, 2027. [Hubei's 2026 Detailed Rules for Automotive Trade-In Subsidies Take Effect, Maximum Subsidy 20,000 yuan] The Hubei Provincial Department of Commerce, together with eight departments including the provincial National Development and Reform Commission and the Department of Economy and Information Technology, officially issued the Detailed Rules for the Implementation of Hubei Province's 2026 Automotive Trade-In Subsidies. The rules specify that through two major approaches, retirement and renewal and replacement renewal, special subsidies will be provided to individual consumers purchasing NEV and small-engine gasoline passenger vehicles, with the maximum subsidy amount reaching 20,000 yuan. The policy has been formally implemented since January 1, 2026. [Xi'an's 2026 Detailed Rules for Automotive Trade-In Subsidies Take Effect, Maximum Subsidy for Retiring a Vehicle and Replacing It with a NEV Reaches 20,000 yuan] Xi'an issued the Detailed Rules for the Implementation of Xi'an's 2026 Automotive Trade-In Subsidies, clarifying that through two major models, retirement and renewal and replacement renewal, special subsidies will be provided for individual consumers purchasing new vehicles. The policy covers the entire year, and subsidy applications will be accepted until January 10, 2027, further reducing residents' car purchase costs and supporting the upgrading of the automotive consumer market. [Beijing's 2026 Automotive Trade-In Subsidy Program Starts on February 9, Maximum Subsidy 20,000 yuan] Beijing's 2026 automotive trade-in subsidy policy has been officially unveiled. Reporters learned on February 6 that Beijing had officially released the Implementation Plan for Beijing's 2026 Automotive Trade-In Subsidies and is about to launch two types of subsidies, "retirement and renewal" and "replacement renewal." The application system will open at 10:00 a.m. on February 9, and eligible car purchase consumers can receive subsidy support of up to 20,000 yuan. Among them, "retirement and renewal" refers to retiring an old vehicle and purchasing a new one. Consumers who purchase a passenger NEV can receive a subsidy of 12% of the new vehicle's selling price, with the subsidy amount capped at 20,000 yuan; those who purchase a fuel passenger vehicle with an engine displacement of 2.0 liters or below can receive a subsidy of 10% of the new vehicle's selling price, with the subsidy amount capped at 15,000 yuan. [Sichuan: Supporting Vehicle Replacement and Renewal, with Subsidies of up to 15,000 yuan] The Sichuan Provincial NDRC and Department of Finance issued a notice on printing and distributing the Policy Measures of Sichuan Province for Implementing Large-Scale Equipment Renewal and Consumer Goods Trade-in in 2026. The notice mentioned support for vehicle replacement and renewal. In 2026, individual consumers who transfer a passenger vehicle registered under their own name through sale and purchase a passenger NEV included in the Ministry of Industry and Information Technology's Catalog of NEV Models Eligible for Vehicle Purchase Tax Reduction and Exemption, or a fuel passenger vehicle with an engine displacement of 2.0 liters or below, will be granted a one-time subsidy. For those replacing with a passenger NEV meeting the above conditions, a subsidy of 8% of the new vehicle's selling price will be granted, with the subsidy amount capped at 15,000 yuan; for those replacing with a fuel passenger vehicle meeting the above conditions, a subsidy of 6% of the new vehicle's selling price will be granted, with the subsidy amount capped at 13,000 yuan. Cui Yan, Deputy Director of Guolian Minsheng Research Institute and Chief Auto Analyst, said that various regions had successively launched 2026 trade-in subsidies and, coupled with the gradual rollout of new models after Chinese New Year and ahead of auto shows, auto sales were expected to stabilize and rebound. Speaking of auto market sales in January, he said overall end-use demand was relatively mediocre in January, mainly because local subsidies on the policy side had not yet been officially launched, while on the supply side few new car models were introduced by automakers. "These two factors are currently improving. Since mid-to-late January, local governments have successively launched trade-in subsidies; supply side, after Chinese New Year and before auto shows, automakers will gradually launch new vehicles or begin pre-launch promotional campaigns." Auto demand is expected to stabilize and rebound after Chinese New Year. According to CCTV News, in 2026, the Ministry of Commerce, together with regional authorities and relevant departments, will further advance the consumer goods trade-in program, with a focus on further optimizing policy implementation in areas such as automobiles and continuously releasing consumption potential. Ministry of Commerce big data showed that as of February 5, 335,000 applications for 2026 auto trade-in subsidies had been filed, driving 53.77 billion yuan in new vehicle sales, strongly supporting the development of the auto market and the recycling and reuse of resources, while promoting industrial quality upgrading and green transformation. In January, the average price of new vehicles participating in trade-in exceeded 160,000 yuan, significantly higher than a year earlier; nationwide, 659,000 retired vehicles were recycled, up 50.2% YoY. On February 9, the Ministry of Commerce held a symposium with automakers to study work related to automobile circulation and consumption. Representatives from relevant automotive industry associations, research institutions, and enterprises attended the meeting. Vice Minister of Commerce Sheng Qiuping attended the symposium and exchanged views with participants. Sheng Qiuping pointed out that China’s ultra-large market had a solid foundation, the automotive consumption chain was long and had great potential, and the continued implementation of policies provided stable support, leaving much room for expanding automobile consumption across the entire value chain. In 2026, the Ministry of Commerce will work with relevant departments to pursue both policy support and reform and innovation, integrate existing measures with incremental policy, optimize the implementation of the automobile trade-in policy, launch pilot reforms for automobile circulation and consumption, improve industry management systems, and take multiple measures to promote both the expansion and upgrading of automobile consumption. On February 12, as Chinese New Year approached, the General Office of the Ministry of Commerce issued the Notice on Properly Carrying Out Trade-in Programs for Consumer Goods During the 2026 Chinese New Year Holiday. It stated that all localities should strengthen funding support for consumer goods trade-in subsidies during the Chinese New Year period, leverage the advantages of different channels, ensure effective policy implementation, and better meet consumer demand. In line with Chinese New Year customs and to create a stronger festive atmosphere, consumers were encouraged to go out for shopping and consumption. During the nine-day 2026 Chinese New Year holiday (February 15–23), consumers will be fully ensured access to apply through offline channels for trade-in subsidies for home appliances and subsidies for purchasing new digital and smart products. Consumers who purchase new cars during the nine-day Chinese New Year holiday will also be eligible to apply for automobile trade-in subsidies in accordance with policy requirements.

On January 21, 2026, the State Council Information Office held a press conference where Vice Minister of the Ministry of Industry and Information Technology Zhang Yunming and spokesperson Tao Qing introduced the achievements in industrial and information technology development in 2025 and answered questions. The key points are as follows: I. Overall Achievements: Four Key Features—Stability, Progress, Innovation, and Vitality Stability : The value-added of industrial enterprises above the designated size increased by 5.9% YoY, with the manufacturing scale ranking first globally for 16 consecutive years; telecommunications service volume grew by 9.1%, and the industrial and information technology sector contributed over 40% to economic growth. Progress : The value-added of equipment manufacturing and high-tech manufacturing increased by 9.2% and 9.4%, respectively; more than 35,000 basic-level smart factories were cumulatively established, and the number of national green factories exceeded 8,000. Innovation : The value-added of integrated circuits and electronic specialty materials increased by 26.7% and 23.9%, respectively; over 330 models of humanoid robots were developed, and the first phase of 6G technology testing resulted in more than 300 key technology reserves; NEV sales reached 16.49 million units, up 28.2% YoY. Vitality : 5G and gigabit optical networks were integrated into 91 out of 97 major categories of the national economy, while industrial internet covered 41 major industrial categories; the number of specialized, refined, distinctive, and innovative small and medium-sized enterprises exceeded 140,000, and high-tech enterprises reached 504,000. II. Progress in Key Areas and Next Steps (I) Green and Low-Carbon Industrial Development Progress : Energy-saving and carbon reduction transformations in traditional industries accelerated, with million-ton-level hydrogen metallurgy projects launched in Hebei and Guangdong, achieving an annual carbon reduction of over 50%; innovation capabilities in the energy-saving and environmental protection equipment industry improved, with over 1,000 technologies and equipment supported for promotion during the 14th Five-Year Plan period; integrated applications such as wind and solar power, energy storage, and hydrogen advanced, with the average utilization rate of renewable energy in green computing facilities exceeding 70%. Next Steps : Address challenges like flexible hydrogen production through technological breakthroughs; promote the large-scale adoption of technologies and equipment driven by application needs; improve standards in areas such as industrial green microgrids and clean, low-carbon hydrogen. (II) Humanoid Robots and Embodied AI Progress : Over 330 product models were developed, accelerating their transition to practical applications; innovation centers were established in Beijing and Shanghai, focusing on R&D of open-source general-purpose robots and operating systems; a standardization technical committee was formed, with participation from more than 70 organizations. Next Steps : Tackle key technologies such as large models and integrated joints; ensure quality, network, and data security; strengthen the ecosystem by enhancing fund support and building open-source communities. (III) New Materials Industry Progress : Innovation and industrial integration were promoted, with high-performance carbon fiber composites applied in subway car bodies; the first-batch new materials insurance compensation program was implemented, facilitating the market entry of products worth over 55 billion yuan; a system of five key platforms was established, and more than 500 standards were released. Next Steps : Leverage the strengths of the national system and market mechanisms, focus on areas such as advanced basic materials, and promote collaborative innovation across the entire chain, while strengthening policy and factor support. Full Text: Ministry of Industry and Information Technology: Main Targets and Tasks for Industrial and Informatization Development in 2025 Successfully Completed On January 21, 2026, the State Council Information Office held a press conference to introduce the achievements in industrial and informatization development in 2025. Zhang Yunming, Member of the Party Leadership Group and Vice Minister of the Ministry of Industry and Information Technology, attended the press conference. Together with Tao Qing, Spokesperson for the Ministry of Industry and Information Technology and Director of the Operation Monitoring and Coordination Bureau, and Xie Cun, Spokesperson for the Ministry of Industry and Information Technology and Director of the Information Communication Development Department, they provided relevant details and answered questions from journalists. The following is a transcript of the press conference. Industrial and Informatization Development in 2025 Characterized by Four Features: "Stable," "Progressive," "Innovative," and "Dynamic" Zhang Yunming: Good morning, ladies and gentlemen, friends from the press! First of all, I would like to thank you for your long-standing concern and support for the cause of industry and informatization. In 2025, facing profound and complex changes in the domestic and overseas situation, and under the strong leadership of the Party Central Committee with Comrade Xi Jinping at its core, the industrial and informatization system fully implemented the spirit of the 20th National Congress of the Communist Party of China and its successive plenary sessions, resolutely shouldering the key task of achieving new-type industrialization. The industrial economy advanced under pressure, developing toward innovation and excellence, achieving effective qualitative improvement and reasonable quantitative growth. The main targets and tasks for the year were successfully completed. Looking back at the industrial and informatization development in 2025, it was characterized by four features: "stable," "progressive," "innovative," and "dynamic." First, the "stable" trend continued to consolidate. We adhered to focusing the emphasis of economic development on the real economy, introduced a new round of work plans for stabilizing growth in ten key industries, supported major industrial provinces in playing a leading role, and effectively boosted the steady growth of the industrial economy. In 2025, the value-added of industrial enterprises above the designated size increased by 5.9% YoY, the proportion of manufacturing value-added in GDP remained stable, and the scale of manufacturing is expected to remain the world's largest for the 16th consecutive year. The total telecommunications service volume increased by 9.1% YoY. The contribution of the industrial and informatization sector to economic growth exceeded 40%, effectively serving as a "ballast stone." Second, the "progressive" pace continued to accelerate. We unwaveringly anchored high-quality development as the primary task, and solidly advanced the intelligent, green, and integrated development of manufacturing. The value-added of equipment manufacturing and high-tech manufacturing industries above the designated size increased by 9.2% and 9.4% YoY, respectively, with growth rates 3.3 and 3.5 percentage points higher than that of industrial enterprises above the designated size. Their share in the total value-added of industrial enterprises above the designated size increased by 2.2 and 0.8 percentage points compared to 2024. The digital and intelligent transformation of the manufacturing sector has been steadily advancing, with a cumulative total of over 35,000 basic-level, 8,200 advanced-level, and 500 outstanding-level smart factories established, and 15 leading-level smart factories nurtured. Industrial carbon reduction, pollution control, green expansion, and growth have been promoted in a coordinated manner, with more than 8,000 national green factories cultivated, and the energy and water consumption per unit of added value for industrial enterprises above designated size continuously decreasing. Third, new momentum continues to grow. We have focused on promoting the deep integration of scientific and technological innovation and industrial innovation, and have implemented key core technology breakthrough projects, industrial foundation reconstruction projects, and major technical equipment breakthrough projects. Significant progress has been made in major equipment such as ultra-large diameter tunnel boring machines and heavy-duty gas turbines, and artificial intelligence has injected strong impetus into industrial economic growth, with the first phase of 6G technology trials forming over 300 key technology reserves. The added value of industries such as integrated circuits and electronic special materials grew by 26.7% and 23.9% YoY respectively, the production of industrial robots increased by 28% YoY, and the sales of new NEVs reached 16.49 million units, up 28.2% YoY. Investment in emerging fields showed a good trend, with sectors like aviation, spacecraft, and equipment manufacturing achieving double-digit growth in investment. Fourth, the effects of "vitality" continue to manifest. We have accelerated reforms in key areas, implemented special actions to reduce the burden on enterprises, expedited the clearance of arrears owed to enterprises, and promoted the implementation of pro-enterprise policies, striving to create a vibrant environment for enterprise development. Initial results have been achieved in the comprehensive management of involution-style competition, and the competitive ecology in key industries such as NEVs and PV continues to improve. 5G and gigabit optical networks have been integrated into 91 out of 97 major categories of the national economy, and industrial internet has covered all 41 major industrial categories, injecting more vitality into economic and social development. Efforts have been strengthened to cultivate high-quality enterprises, with over 140,000 specialized, refined, unique, and innovative SMEs and 504,000 high-tech enterprises within their validity period cumulatively fostered. In 2025, the added value of specialized, refined, unique, and innovative "little giant" enterprises in industrial enterprises above designated size grew by 9% YoY, and the total profit of high-tech enterprises in the first 11 months grew by 5.3% YoY. Looking back at the past year and ahead to the next five years, during the 14th Five-Year Plan period, China's industrial economic development has achieved new significant accomplishments, with its characteristics of resilience, potential, and vitality further highlighted. We are full of confidence in maintaining a steady and positive trend for industrial economic development in 2026. In the new year, the industrial and information technology system will adhere to the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, conscientiously implement the deployment of the Central Economic Work Conference, take promoting high-quality development as the theme, uphold the general principle of seeking progress while maintaining stability, better coordinate domestic economic work and international economic and trade struggles, better coordinate development and security, vigorously promote new-type industrialization, accelerate the construction of a modern industrial system with advanced manufacturing as the backbone, and focus on stabilizing growth, strengthening innovation, promoting integration, optimizing governance, and preventing risks, to ensure a good start for the 15th Five-Year Plan. I will briefly introduce these points. Building on the experience summarized from last year, we have continued to prepare this review material on the industrial and information technology developments in 2025 and during the 14th Five-Year Plan period for your reference. Next, my colleagues and I are ready to take questions from our journalist friends. Thank you. Q&A Session Emerging and Future Industries: Achieving Three "Batches" to Provide Strong Momentum for China's Economic Development Journalist: In recent years, how has the development of China's emerging and future industries progressed? The proposal for the 15th Five-Year Plan suggests cultivating and strengthening emerging and future industries. How will this be promoted and implemented? Thank you. Zhang Yunming: Thank you for your question. I will address it. Since the start of the 14th Five-Year Plan period, the Ministry of Industry and Information Technology has resolutely implemented the decisions and plans of the CPC Central Committee and the State Council, coordinating efforts to optimize and upgrade traditional industries, develop and strengthen emerging industries, and make forward-looking arrangements for future industries. We have advanced technological breakthroughs, achievement transformation, and industrialisation in an integrated manner, improving institutional mechanisms for supply-demand matching, collaborative research, resource sharing, and policy coordination. We have developed new quality productive forces according to local conditions, providing strong momentum for China's economic and social development, which is reflected in three "batches." First, a batch of innovative achievements with high "innovation content" have emerged one after another. "Good ideas" from the laboratory are continuously transformed into "good products" on the production line. Technologies such as perovskite materials, permanent magnetic materials, and power batteries are at internationally advanced levels. New-type networks, high-speed communications, advanced computing, emerging software, and blockchain technologies are accelerating iteration. Prototypes like atomic clocks and magnetometers based on new quantum technologies have been successfully developed. Superconducting quantum computers and photonic quantum computers have achieved quantum advantage, meaning these computers possess computational capabilities that surpass any classical computer in solving specific problems. Brain-computer interface technology is accelerating its expansion from medical applications to fields like education and industry. Second, a batch of new products with broad application prospects are accelerating their entry into the market. End-use products such as intelligent robots are continuously maturing and being put into use. Bio-manufacturing products are expanding their application scope in industries like pharmaceuticals and health, daily chemicals and cosmetics, and green energy. A number of new scenarios, such as "5G+," "Industrial Internet+," "Robotics+," and "Beidou+," are being rapidly cultivated, providing vast market space for the rapid industrialisation of new products. Third, a batch of competitive industries with strong international competitiveness have emerged. During the 14th Five-Year Plan period, a number of emerging industries, including NEVs, PV, low-altitude equipment, ships, and marine engineering equipment, accelerated their development and growth, making the name card of "Made in China" even more "impressive."In 2025, NEV production and sales reached new highs, the PV industry developed steadily, injecting green momentum into global development. The number and variety of civil drone products continued to grow. The shipbuilding industry achieved simultaneous improvement in both quantity and quality, with industrial competitiveness continuously strengthening. Looking ahead to the "16th Five-Year Plan" period, in terms of emerging industries, we will thoroughly implement the action to develop and strengthen emerging industries and create new momentum, the large-scale application demonstration action for new technologies, new products, and new scenarios in manufacturing, establish national demonstration bases for emerging industrial development, and work from both supply and demand sides to accelerate the cultivation of emerging pillar industries. Regarding future industries, we will implement the "Implementation Opinions on Promoting the Innovative Development of Future Industries," continuously carry out the "unveiling the list and appointing the best" mechanism for innovation tasks, organize and implement a number of forward-looking and strategic major science and technology projects, support local governments in building a number of future industry pilot zones according to local conditions, increase government investment fund investments, and form a favorable situation nationwide where future industries compete for development. That's all for my answer, thank you. Thoroughly Implement the Smart Manufacturing Project, Continuously Carry Out Gradient Cultivation of Smart Factories Reporter: As benchmark demonstrations for smart manufacturing, the cultivation and development of leading-edge smart factories have attracted much attention. What landmark achievements have they made in key technology breakthroughs and industrial chain collaboration? How will the cultivation be deepened next to expand the demonstration and leading effect? Thank you. Xie Cun: Thank you for your question. Cultivating leading-edge smart factories is a strategic measure for China to seize the opportunity of industrial intelligent development and build future manufacturing competitive advantages. Since 2025, we have jointly promoted this work with departments including the National Development and Reform Commission (NDRC), the Ministry of Finance, the State-owned Assets Supervision and Administration Commission of the State Council, the State Administration for Market Regulation, and the National Data Administration, aiming to create a number of "Chinese models" representing the highest global level of smart manufacturing, paving the way and leading the overall upgrade of China's manufacturing industry. Currently, the first batch of 15 leading factories were collectively unveiled at the 2025 World Intelligent Manufacturing Summit, and the related cultivation work has achieved outstanding progress in three aspects: First, beneficial exploration has been conducted in manufacturing modes. The leading factories meet production requirements for high efficiency, high precision, high flexibility, and high quality, setting transformation benchmarks for their respective industries. Some automobile factories achieved flexible mixed-flow production of multiple car models, some petrochemical factories achieved autonomous operation relying on digital twins, and some optical cable factories conquered extreme manufacturing processes for ultra-large size preform rods, etc. These changes drove an average productivity increase of 29% and reduced product defect rate by 47%. Second, innovative breakthroughs have been achieved in manufacturing technology. Currently, artificial intelligence has penetrated over 70% of business scenarios in leading factories, accumulated more than 6,000 vertical domain models, drove the large-scale application of over 1,700 key smart manufacturing equipment and industrial software pieces, and formed a number of industrial intelligent agents with perception, decision-making, and execution capabilities, promoting the evolution of smart manufacturing from "automation" to "autonomy." Third, in terms of industrial value, it has driven synergistic upgrading. The lighthouse factories not only provide high-end products but also extend into high-value models such as large-scale customization, industry chain collaboration, and predictive maintenance, transforming from "product manufacturers" into comprehensive providers of "products + services + solutions." Lighthouse factories export relevant capabilities to the entire industry, driving the synergistic upgrading of more than 1,300 upstream and downstream enterprises, and promoting the overall leap of the industry chain toward the high end. Next, we will deeply implement the smart manufacturing project and continue to carry out gradient cultivation of smart factories. We will further expand the scale and establish more benchmarks. We will support leading enterprises in exploring future manufacturing models and continue to cultivate a number of lighthouse factories to lead the overall transformation of the industry. We will further refine standards and promote knowledge sharing. We will systematically summarize best practices to form replicable and promotable technical guidelines, standards, and solutions, and export and share them with the entire industry. We will further open up and collaborate, contributing China's solutions. We will promote lighthouse factories as sources of technology, standards, and rules, and accelerate their replication and promotion overseas, providing Chinese wisdom for the global digital and intelligent transformation of manufacturing. Let us look forward to lighthouse factories continuously injecting new momentum into "Intelligent Manufacturing in China" and exploring new frontiers! That's all for my answer, thank you. Three Aspects of Efforts to Expand Domestic Demand and Optimize Supply to Better Meet the People's Needs for a Better Life Reporter: The Central Economic Work Conference listed "adhering to domestic demand-led approach and building a strong domestic market" as the primary task. May I ask, what is the current development status of the consumer goods industry? In 2026, how will we further adapt to consumption upgrading, improve the supply capacity of high-quality consumer goods, and better meet consumer demand? Thank you. Tao Qing: Thank you for your question, I will answer it. The consumer goods industry is a traditional advantageous industry and an important livelihood industry in China. Currently, there are about 195,000 enterprises above the designated size, employing more than 25 million people, accounting for 37% and 34.3% of all industrial enterprises above the designated size, respectively. In the full year of 2025, the value-added of consumer goods industries above the designated size increased by 3.7% YoY, accounting for 26.1% of all industries above the designated size. In 2025, our ministry thoroughly implemented the "Action Plan for Boosting Consumption," and jointly issued and implemented the "Implementation Plan on Enhancing the Adaptability of Consumer Goods Supply and Demand to Further Promote Consumption" with multiple departments. We mainly focused on three aspects to continuously expand domestic demand, optimize supply, and better meet the people's growing needs for a better life. First, we made every effort to optimize supply-demand synergy and continuously increased the supply of high-quality products. We organized promotional consumption activities such as "Foodie Season," "Better Supply and Upgrading in Textiles and Apparel," and "Shopping Season for Respecting the Elderly," cumulatively releasing 35 landmark bio-manufacturing products, 1,321 innovative textile products, 1,188 high-quality elderly products, and 1,021 upgraded and innovative consumer goods. We improved the quality and safety traceability system for infant formula milk powder, striving to meet diverse consumer demands with high-quality supply, so that the people "have the supply for what they want to buy and feel more assured about what they buy." Second, strengthen the leading role of brand strategy to activate the intrinsic momentum of domestic product consumption. Deeply implement the "increase variety, improve quality, and create brands" strategy in the consumer goods industry, release the first batch of 93 enterprise brands and 43 regional brands of Chinese consumer famous products, organize and host the Famous Consumer Products Conference, and improve the brand cultivation and promotion system. Focus on cultivating historical classic industries, creating "national trend masterpieces" such as Chinese tea, silk, and porcelain, exploring new consumption scenarios, formats, and models, and promoting domestic products to not only "break out" but also "shine," becoming the "favorites" of the people's consumption. Third, consolidate the foundation of industrial upgrading and build a solid support for high-quality supply. Issue and implement digital transformation plans for industries such as textiles, light industry, food, and pharmaceuticals. Strengthen the construction of distinctive industrial clusters in the consumer goods industry, release the first list of 39 traditional advantageous food production areas and key local specialty food industries for cultivation, and 25 key textile and garment special industry clusters (at the county level) under the "one county, one policy" initiative in central and western regions, making the consumer market both full of "vitality" and more "technological." Next, we will resolutely implement the decisions and deployments of the CPC Central Committee and the State Council, closely follow the orientation of supply-demand collaboration, keep up with the trend of consumption upgrade, optimize product supply, continuously build an array of Chinese consumer famous products, improve the brand development ecosystem, steadily promote the intelligent, green, and integrated development of the consumer goods industry, and build a "hard support" for consumption supply. With more practical measures, we will release consumption vitality, enhance consumption momentum, and promote more domestic products to gain fame domestically and go global, making consumption choices richer and the consumption experience more comfortable. That concludes my response, thank you. Five Measures to Accelerate High-Quality Development of the Artificial Intelligence Industry Reporter : In the context of "AI + Manufacturing," which industries will be prioritized for support? How will the balance be struck between potential unemployment or foreign restrictions due to innovative development? Thank you. Zhang Yunming : Thank you for your question. I will answer it now. By 2025, global artificial intelligence technology will accelerate innovation and iteration, deepening integration with various industries and fields. 2025 is also a year when China's artificial intelligence industry thrives and shines. We focus on both the development of the AI industry and its deep application in the manufacturing sector, achieving significant results, mainly in four aspects. First, the foundation continues to be strengthened. Domestic enterprises have released multiple AI chip products, with smart computing power reaching 1,590 EFLOPS. High-quality data sets in the industry are emerging at an accelerated pace, and domestic large models lead the global open-source ecosystem. According to relevant institutions, by 2025, the number of AI enterprises in China will exceed 6,000, and the core industry scale is expected to surpass 1.2 trillion yuan. Second, products have become increasingly diverse. AI-enabled end-use products such as AI phones, AI computers, and AI glasses are rapidly entering millions of households. In the first three quarters of 2025, shipments in the smart glasses market exceeded 1.78 million units, nearly 80% of which were AI glasses, adding a greater sense of technology and futurism to production and daily life. Third, applications continue to expand. Currently, AI applications have covered key industries such as steel, nonferrous metals, power, and communications, and are gradually penetrating key areas such as product R&D, quality detection, and client services. For example, a home appliance enterprise used its self-developed "5G+AI" industrial visual detection system to increase detection accuracy to 99.98% and improve per capita productivity by 275%. Fourth, the ecosystem is accelerating its growth. The National AI Industry Investment Fund was launched and put into operation, with a capital scale of 60 billion yuan. The AI Standardization Special Initiative was further implemented, resulting in the development and release of over 40 key national and industry standards by 2025, along with the incubation and launch of key open-source projects such as agent protocols and operator libraries. Recently, our ministry, together with seven other departments, issued the Implementation Opinions on the Special Initiative for "AI + Manufacturing," accompanied by industry transformation guidelines and enterprise application guides. In the next step, we will focus on implementing the Implementation Opinions to accelerate the high-quality development of the AI industry. We will strengthen technological innovation, accelerating breakthroughs in key technologies such as training chips and heterogeneous computing power. We will promote integrated applications, focusing on sectors such as software programming, new materials R&D, pharmaceutical R&D, and information communications, and systematically drive breakthroughs in large and small models as well as intelligent agents. We will foster enterprise growth, stimulating the emergence of more enabling application service providers. We will enhance ecosystem development, accelerating the formulation of urgently needed industry standards and improving the AI open-source mechanism. We will advance security governance, strengthening R&D and application in areas such as algorithm security protection and training data protection, and enhancing enterprises' ability to prevent ethical risks. Regarding the employment issue you mentioned, I would like to emphasize that this is an inevitable challenge in the development of AI. Technological progress often accompanies the restructuring of employment patterns and the iteration of job positions. However, restructuring does not mean disappearance, and iteration does not mean replacement. We must view the challenges of development through the lens of development itself. This is also an issue we must resolve. Every country faces similar challenges in the process of developing AI. We will adhere to application-driven approaches, fully leverage the enabling role of AI integration, and while promoting the restructuring of organizational models, work methods, and production paradigms, continuously enhance the AI literacy of workers and cultivate more interdisciplinary talents who understand both AI and manufacturing. This is also an issue that has been proven by the laws of historical development to be inevitably solvable. From the Industrial Revolution to the Information Technology Revolution, every major technological transformation has raised concerns about employment, but ultimately, through industrial transformation, productivity has been enhanced, employment structures optimized, and new jobs created. Finally, I would like to emphasize that in the face of artificial intelligence development, we must uphold the concept of a community with a shared future for humanity, strengthen international exchanges and cooperation with an open and win-win attitude. The new challenges brought by artificial intelligence will surely be effectively resolved, and we should all be full of confidence in this. Thank you! Cultivating New Momentum for Green Development from Three Aspects: Technology Drive, Application Traction, and Standards Leadership Reporter: We have noticed that in 2025, the green and low-carbon transformation of industry accelerated, and the green manufacturing system continued to improve. May I ask what progress has been made in promoting the green and low-carbon development of industry, and how will we further contribute to high-quality green and low-carbon development in the future? Thank you. Tao Qing: Thank you for your question. I will answer it. The advancement of intelligent production technologies and green energy technologies, while empowering industrial greening, has also given rise to green industrialisation. Our ministry has consistently implemented the decisions and deployments of the Central Committee of the Communist Party of China and the State Council, actively cultivating new momentum for green development, seeking innovation through green transformation, and achieving positive results. First, unleashing new vitality in traditional industries. We have deeply advanced energy-saving and carbon reduction upgrades, promoting traditional industries to achieve green expansion and growth through carbon reduction and pollution control. For example, using hydrogen as a reducing agent for iron smelting can reduce pollutants and carbon dioxide emissions at the source. Currently, million-ton-level hydrogen metallurgy projects in Hebei, Guangdong, and other places have been successively put into operation. Compared to traditional processes, these can reduce carbon emissions by over 50% annually, creating a new landscape for the development of the steel industry. Second, providing new equipment for energy conservation and environmental protection. China's energy conservation and environmental protection equipment industry has continued to expand in scale, with innovation capabilities significantly enhanced. During the "14th Five-Year Plan" period, our ministry supported the promotion and application of over a thousand technological equipment items for energy saving, carbon reduction, water conservation, and pollution reduction. We carried out innovation tasks for major environmental protection technologies and equipment through open solicitation, strengthened breakthroughs and supply-demand matching, providing key equipment support for the comprehensive green transformation of economic and social development. Third, developing new business models in green energy. We have proactively adapted to the new-type power system, enhancing the local consumption level of renewable energy. We coordinated the construction and application of industrial green microgrids and digital energy-carbon management centers, released typical application scenarios and cases, and guided the integrated application of wind power, solar power, energy storage, and hydrogen. In 2025, the average utilization rate of renewable energy in national green computing facilities exceeded 70%. The Central Economic Work Conference identified "adhering to the 'dual carbon' goals as the guide and promoting comprehensive green transformation" as a key task for next year's economic work. In the next step, we will thoroughly implement Xi Jinping's Thought on Ecological Civilization, firmly establish and practice the concept that "lucid waters and lush mountains are invaluable assets," and focus on three aspects to cultivate new momentum for green development: Technology-driven aspect: Addressing industrial development needs, we will focus on tackling difficulties and bottlenecks such as flexible hydrogen production and the digital-intelligent operation of microgrids, develop key energy-saving and environmental protection equipment and integrated system solutions suited to specific scenarios, and establish a technology and equipment R&D and promotion mechanism dominated by enterprises and deeply integrated with industry, academia, research, and application. Application-led aspect: Guided by market demand, we will direct various resource elements towards green and low-carbon development, promote the transition of advanced and applicable technology and equipment from "demonstration applications" to "large-scale popularization," and form a virtuous cycle of technological iteration, industrial upgrading, and model innovation. Standard-led aspect: Focusing on areas such as industrial green microgrids, clean low-carbon hydrogen, and energy-saving and environmental protection equipment, we will formulate and revise a batch of basic universal and technical specification standards, promote the transformation of scientific and technological achievements into standards, safeguard baseline requirements and create benchmarks, and comprehensively strengthen the implementation and application of standards. Thank you. Improving the Policy and Regulatory Framework, High-Quality Enterprise Cultivation, and Public Service System to Promote High-Quality Development of Small and Medium-Sized Enterprises Reporter : Small and medium-sized enterprises are an important support for economic resilience. What was the development status of China's SMEs in 2025? How will efforts be intensified next to promote the high-quality development of SMEs? Thank you. Zhang Yunming: Thank you for your question. I will answer this one. In 2025, the development of small and medium-sized enterprises continued to maintain a stable and positive trend, which can be summarized as two "steadies." The first "steady" is the steady growth of major economic indicators. In 2025, the value-added of industrial SMEs above designated size increased by 6.9% YoY, and the SME export index for December was 52.4%, having remained in expansion territory for 21 consecutive months. The second "steady" is the steady improvement in development quality. Cumulatively, 17,600 specialized, sophisticated, distinctive, and innovative "little giant" enterprises, over 140,000 specialized, sophisticated, distinctive, and innovative SMEs, and over 600,000 scientific, technological, and innovative SMEs have been cultivated. The R&D intensity of specialized, sophisticated, distinctive, and innovative "little giant" enterprises reached 7%, with a total of 460,000 invention patents and an average of 26.6 per enterprise. However, we also note that currently many SMEs still face difficulties and challenges in areas such as market orders, talent attraction and cultivation, capital turnover, and transformation and upgrading, requiring further improvement of policy measures and increased support efforts. In 2026, our ministry will adhere to the "two unwaverings," emphasize both service and management as well as development and support, improve the policy and regulatory system, the high-quality enterprise cultivation system, and the public service system to promote the high-quality development of small and medium-sized enterprises. First, we will continue to optimize the development environment for enterprises. We will formulate a development plan for promoting small and medium-sized enterprises (SMEs) during the 15th Five-Year Plan period. We will fully implement the Regulation on Ensuring Payments to Small and Medium-sized Enterprises, intensify efforts to clear overdue payments owed to enterprises, resolutely curb new instances of overdue payments, and safeguard the legitimate rights and interests of SMEs. We will accelerate the revision of the classification criteria for SMEs, further optimize classification indicators and methods, and enhance the precision and effectiveness of policy support. Second, we will intensify efforts to cultivate more specialized and innovative SMEs. We will expedite the establishment of mechanisms to promote the development and growth of specialized and innovative SMEs, and implement a three-year action plan for the gradient cultivation of high-quality enterprises. We will explore the establishment of a number of specialized and innovative empowerment centers. We will improve the gradient cultivation system for characteristic industrial clusters of SMEs. We will refine the mechanism where large enterprises "post challenges" and SMEs "respond to challenges," promoting collaborative and integrated development among enterprises of all sizes. Third, we will make every effort to provide comprehensive, all-element, and full-cycle services. Focusing on the needs of enterprises, we will establish and effectively utilize the China SME Service Network. We will create the first batch of national public service demonstration platforms (bases) for SMEs. In collaboration with relevant departments, we will launch the "Benefiting Enterprises Together" service initiative for SMEs, continuously strengthening high-quality and efficient public services in areas such as market expansion, digital empowerment, financing promotion, talent attraction and cultivation, management enhancement, and international cooperation, to support the high-quality development of SMEs. That concludes my response. Thank you. China has constructed the world's largest information infrastructure with leading technology. Reporter : I would like to ask about the construction of information infrastructure. In recent years, China has consistently adhered to the principle of moderately advancing the construction of information infrastructure, providing strong support for the in-depth integration and development of the real economy and the digital economy. What is the current overall situation regarding the construction of information infrastructure? Could you provide an introduction? Additionally, what are the key tasks for the next steps? Thank you. Xie Cun: Thank you for your question. I will answer it. As you mentioned, moderate advancement is one of our primary approaches in constructing information infrastructure. Following this approach, we have built the world's largest information infrastructure with leading technology. Here are some sets of data for reference: In terms of mobile networks, 4.838 million 5G base stations have been constructed, with 5G coverage extended to all townships and 95% of administrative villages across the country. 5G evolved networks (i.e., 5G-A) have covered more than 330 cities. In terms of fixed networks, the number of 10G PON ports for gigabit optical networks has reached 31.62 million, with two-thirds of prefecture-level cities meeting the gigabit city standards. Pilot constructions of 10-gigabit optical networks have also been initiated in some cities. Regarding computing infrastructure, 42 intelligent computing clusters with 10,000 cards each have been established, with the scale of intelligent computing power exceeding 1,590 EFLOPS, ranking among the top globally and strongly supporting the rapid development of China's artificial intelligence industry. Build well, and use well. In recent years, we have also adhered to the principle of "building and using in combination, promoting construction through use," dedicated to advancing the application of information infrastructure at all levels. At the individual user level, the scale of 5G users exceeded 1.2 billion, accounting for 65.9% of all mobile phone users, with an average usage of 23GB per user in December 2025; gigabit broadband users reached 240 million, accounting for 34.5% of all broadband users. In the vertical industry sector, over 23,000 "5G+Industrial Internet" projects were launched, and new models and forms such as "dark factories," "unmanned mines," and "smart ports" gradually grew, becoming a key driving force for the upgrade of traditional industries. In the future, continuous iteration and upgrading will be carried out to maintain technological leadership. We follow the rule of "commercializing one generation while researching and developing the next," steadily enhancing the capabilities of information and communication technology. Currently, China's share of 5G standard-essential patent declarations is 42% globally; 6G R&D has completed the first phase of technical trials, forming over 300 key technology reserves, and the second phase of 6G technical trials has recently been initiated. Next, our ministry will focus on coordinating the three aspects of "construction, use, and research," emphasizing the three key words: "upgrade, iteration, and deepening," to promote high-quality development in the information and communication industry. Upgrade means advancing network upgrades. Implementing the "broadband upgrade" special program, deploying 5G-A networks and 10-gigabit optical networks in urban areas and key scenarios, and promoting the transition from "dual gigabit" to "dual 10-gigabit." Accelerating the development of "intelligent connectivity" in mobile IoT. Strengthening the construction of computing power networks, and deeply implementing the city-level "millisecond computing" special action. Iteration means accelerating technological iteration. Speeding up 6G R&D, and proactively planning and nurturing the 6G application industry ecosystem. Enhancing the layout of next-generation optical communications and quantum information R&D. Deepening means promoting deeper applications. Accelerating the integration of 5G, industrial internet, gigabit optical networks, and computing power into industries such as manufacturing, agriculture, transportation, culture and tourism, education, and healthcare, to comprehensively serve the digital and intelligent development of the economy and society. That concludes my response, thank you. Significant progress in the digital industry during the 14th Five-Year Plan period in terms of scale, innovation capability, and enabling applications Reporter: Since the 14th Five-Year Plan, the speed of digital technology innovation in China has continuously accelerated, and the digital industry has rapidly developed. Could you please tell us about the characteristics? Thank you. Zhang Yunming: Thank you for your question. I will answer this. The digital industry is a key support for the deep integration of the real economy and the digital economy, and it is also an important carrier for developing new quality productive forces. Since the initiation of the 14th Five-Year Plan period, China's digital industry has experienced rapid development, with continuous improvements in quality and efficiency, achieving significant progress in three key areas: scale and volume, innovation capability, and enabling applications. The scale and volume have continued to expand, with major provinces playing an increasingly prominent role as stabilizers for industrial development. Preliminary estimates indicate that by the end of 2025, the revenue of China's digital industry reached approximately 38.3 trillion yuan, with profits of 3.1 trillion yuan, representing cumulative growth of about 39.5% and 48.4%, respectively, compared to the end of the 13th Five-Year Plan period (2020). In 2025, the provinces and cities of Guangdong, Jiangsu, Beijing, Zhejiang, Shanghai, Shandong, Sichuan, Fujian, Anhui, and Hubei ranked among the top 10 in terms of digital industry revenue nationwide, contributing over 90% to the growth of the national digital industry revenue. Innovation capability has accelerated its release, with the role of fostering new momentum as an accelerator becoming more prominent. Innovations in the software industry have continuously emerged, the ecosystem for basic software has continued to improve, and the number of devices equipped with the OpenHarmony operating system has approached 1.2 billion. The artificial intelligence industry has flourished, with a series of groundbreaking innovations continuously emerging and a growing variety of end-use products becoming increasingly abundant. Digital products in new fields and tracks are driving a new round of consumption upgrades, becoming new growth points for economic development. Enabling applications have advanced in depth, with the role of digital-real integration as a connector becoming more prominent. Integrated applications of the industrial internet have achieved full coverage across major industrial categories, initially establishing a multi-level and systematic industrial internet platform system, with the number of industrial equipment connections on key national platforms exceeding 100 million units (sets). Digital-intelligent technologies have been deeply integrated into core production and manufacturing processes, with 100 high-level 5G factories reaching globally leading standards, achieving average capacity increases of 25%, product quality improvements of 21%, and operational cost reductions of 19%. In collaboration with the Ministry of Finance, support has been provided to 101 pilot cities for the digital transformation of small and medium-sized enterprises, promoting the digital transformation of 45,000 small and medium-sized enterprises through a "point-line-surface" approach. Moving forward, we will continue to accurately grasp the trends and patterns of digital industry development, accelerate technological innovation and enabling applications, strengthen standard leadership and ecosystem building, enhance policy coordination and factor support, and intensify efforts to promote the high-quality development of the digital industry. That concludes my response. Thank you. The 2025 "Ten Practical Actions for Warm Information and Communication Services" Achieved Positive Results Reporter : We understand that the information and communication industry is closely related to everyone's daily life. May I ask what measures the MIIT has taken in 2025 to promote the industry's services for people's livelihoods? How will you further advance information and communication services to make them more convenient, beneficial, and favorable for the people? Thank you. Xie Cun : Thank you for your question. Information and communication services are closely related to the immediate interests and experiences of the general public. The Ministry of Industry and Information Technology has always adhered to a people-centered development philosophy, taking practical measures to improve people's livelihoods. In H1 2025, we guided the release of the "Ten Practical Deeds for Warm-hearted Information and Communication Services." Since the launch of this initiative, a series of positive outcomes have been achieved: First, the handling and use of telecommunications services have become more convenient. "Online processing" now covers almost all types of telecom services, with over 91% of transactions conducted online. Video customer service has served more than 60 million users, reducing the need for people to make physical visits and making things easier for them. We organized basic telecom enterprises to publish standardized telephone marketing measures, centrally display telecom tariff plans, upgrade services such as capping excess data usage, and provide a 7-day appointment service for broadband cancellation. For key scenarios like automatic renewals, users are reminded via SMS and phone calls, making consumption more transparent and reassuring. Second, digital services for the elderly have become more considerate. Basic telecom enterprises have fully covered their own business halls with dedicated love seats, providing priority green channels and auxiliary devices for seniors, and accelerating the promotion of "door-to-door services" and "one-on-one teaching" for the elderly. The "one-click access to human customer service" senior hotline has served over 650 million people. A total of 3,092 websites and apps closely related to the lives of the elderly have completed age-friendly and accessibility renovations, continuously enhancing the convenience and accessibility of services. Third, the use of recycled numbers has become safer. Before issuing new numbers, basic telecom enterprises refreshed over 250 million recycled numbers and unlinked more than 1 billion internet applications. They launched an "active refresh" service on official apps and mini-programs, supporting the unbinding of 239 commonly used internet applications, and processed over 360 million unbinding requests for more than 5.8 million users. Fourth, the legitimate rights and interests of users are better protected. We have promoted end-user enterprises to add features that record the use of sensitive permissions such as microphones, cameras, and location, allowing users to view and disable these permissions at will, thus better protecting personal information security. We have also promoted the transparency of algorithmic recommendations, providing users with easy options to turn off personalized recommendation services. We have introduced "do not disturb" services for calls and messages, offering innovative functions such as smart answering, call verification reminders, and international call protection, helping to safeguard the tranquility of users' lives. Moving forward, we will continue to focus on the concerns and expectations of the public, further implementing the "Ten Practical Deeds for Warm-hearted Information and Communication Services," and striving to enhance the supply of digital services, promoting clear and worry-free consumption. We will strengthen the promotion of digital aging development achievements, providing more high-quality and convenient digital products and services for the elderly and people with disabilities. Expand the coverage of "Secondary Number Renewal" and promote its integration with more internet applications closely related to people's livelihoods. Improve the regular and long-term governance mechanism for personal information protection in apps, enhancing the public's sense of gain, happiness, and security. That's all from me, thank you. Continue to promote technological innovation and iterative upgrades in humanoid robots, driving the development of the embodied AI industry. Reporter: Over the past year, the humanoid robot industry has developed rapidly. What level has China's humanoid robot industry achieved in terms of whole-machine development, breakthroughs in core components, and commercialization scenarios? What will be the focus of industrial cultivation in the next step? Thank you. Zhang Yunming : Thank you for your question. I will answer it. From its stunning debut at the 2025 Spring Festival Gala to competing alongside athletes in sports events, humanoid robots have demonstrated their "kung fu mode," and their rapid development is evident to all. Driven by artificial intelligence, the industry has evolved beyond expectations. In 2025, the number of domestic whole-machine enterprises exceeded 140, and over 330 humanoid robot products were released. The industry widely regards 2025 as the first year of mass production for humanoid robots, with the industry poised for takeoff and promising prospects. Over the past year, following the approach of "innovation-driven development, scenario traction, and ecological synergy," we have made significant progress in humanoid robot technology and products. Currently, humanoid robots in China are capable of "standing steadily, walking stably, and running quickly," accelerating their transition from "moving on stage" and "running in competitions" to "being used in households" and "working in factories." We have focused on enhancing "hard power" to solidify the technological foundation. We supported Beijing and Shanghai in establishing innovation centers for embodied AI and humanoid robots, developed open-source public version robots such as "Qinglong" and "Tiangong," and the "Kaiwu" operating system, driving breakthroughs in basic software and hardware. We have promoted "rapid deployment" to advance application demonstrations. By deeply exploring high-value scenarios such as humanoid robots serving people's livelihoods and performing tasks, we have facilitated the large-scale development of new technologies and products. We have fostered a "favorable ecosystem" to strengthen multi-party collaboration. The Ministry of Industry and Information Technology established the Humanoid Robot and Embodied AI Standardization Technical Committee, with active participation from over 70 top-tier enterprises and research institutions. In the field of embodied AI, we supported the construction of national AI application pilot bases, creating an integrated innovation hub for humanoid robots and embodied AI covering "R&D-design-testing-manufacturing-application." In the next step, we will continue to promote technological innovation and iterative upgrades in humanoid robots, using humanoid robots as a small entry point to drive the development of the larger embodied AI industry. We will focus on "advancing technology" by continuously organizing tasks such as open challenges and missions, deploying national major scientific and technological projects, and enhancing the technical level of large models, integrated joints, computing power chips, and other areas. Continue to "Ensure Safety" by enhancing the quality, cybersecurity, and data security inspection and detection of humanoid robots, and by conducting research and management services related to scientific and technological ethics, thereby achieving high-quality development underpinned by high-level security. Accelerate "Strengthening the Ecosystem" by increasing the support from the National AI Industry Investment Fund for humanoid robots, establishing open-source communities for humanoid robots, and issuing the Comprehensive Standardization System Development Guidelines for Humanoid Robots and Embodied AI, thereby promoting the global sharing of innovative achievements. That concludes my response. Thank you. Three Measures Have Significantly Enhanced the Development Level and Supply Assurance Capability of New Materials Reporter: We have observed that in recent years, China's new materials industry has entered a period of accelerated development, with its industrial scale continuously expanding. Could you elaborate on the efforts made to promote the innovation, R&D, and practical application of new materials? How will the development of the new materials industry be further advanced? Thank you. Tao Qing : Thank you for your question. President Xi Jinping emphasized that the new materials industry is a strategic and foundational sector, as well as a key area of high-tech competition, and we must strive to catch up and keep pace. The Ministry of Industry and Information Technology has thoroughly studied and implemented President Xi Jinping’s important directives, working alongside relevant departments and local governments to vigorously promote the deep integration of scientific and technological innovation and industrial innovation in new materials, resulting in a significant improvement in the development level and supply assurance capability of new materials. We have focused on three key areas of work: The first area is strengthening key breakthroughs. We have organized and implemented national major science and technology projects and the industrial foundation reengineering project, reinforced the leading role of enterprises in innovation, established upstream-downstream cooperation mechanisms centered on key downstream application fields, and carried out systematic collaborative innovation. Since the 14th Five-Year Plan period, a number of key materials have been successfully developed. For example, high-performance carbon fiber composites were applied for the first time globally in the main load-bearing structures of commercially operated metro train bodies, achieving an 11% reduction in vehicle weight and an annual reduction of approximately 130 mt in CO₂ emissions, thereby advancing urban rail transit toward lightweight and green upgrades. The second area is strengthening promotion and application. Focusing on the bottlenecks faced by new materials during their initial market entry, we have deeply implemented the first-batch new materials insurance compensation policy, expanded the scope of supported materials and duration for the first batch, alleviated user procurement concerns, and encouraged local governments to tailor the first-batch policy according to local conditions to accelerate the promotion of first-batch materials. To date, new materials products with a cumulative value exceeding 55 billion yuan have been introduced to the market, supporting endeavors such as the Shenzhou-21 manned spacecraft in reaching for the stars, enabling the C919 large aircraft to soar through the skies, and facilitating the operation of smart EMUs across China. The third area is strengthening capacity building. A layout has been established, forming a key platform system for new materials that covers the entire process, including material R&D, pilot-scale maturation, material production, testing and verification, and material application. This accelerates the synchronized testing, verification, and iterative upgrading of new materials and end-use products. Cumulatively, it has provided nearly 3,000 batches of new material application verification services, over 1.5 million testing and evaluation services, and served 230,000 enterprises. More than 500 new material standards have been issued, leading the optimization and upgrading of advanced basic materials, key strategic materials, and cutting-edge new materials. Next, our ministry will resolutely implement the decisions and plans of the Central Committee of the Communist Party of China and the State Council, fully leverage the advantages of the new-type national system and the super-large market, and base our efforts on meeting the practical needs of key application fields. With the goal of leading industrial development through material innovation, and focusing on advanced basic materials, key strategic materials, cutting-edge new materials, and "AI + materials" as development directions, we will promote collaborative innovation across the entire chain of advanced materials upstream and downstream. We will strengthen policy coordination, financial support, labour supply, and factor guarantees, create a favorable ecosystem for the R&D and application of new materials, and comprehensively enhance the innovation capacity and development efficiency of the new materials industry. That is all from me. Thank you.

According to data from the National Bureau of Statistics (NBS), in December 2025, the national consumer price index (CPI) rose 0.8% YoY. Specifically, prices in urban areas increased by 0.9%, while those in rural areas increased by 0.6%; food prices rose by 1.1%, and non-food prices rose by 0.8%; prices of consumer goods increased by 1.0%, and prices of services increased by 0.6%. For the full year of 2025, the national consumer price index remained flat compared with the previous year. In December 2025, the ex-factory prices of industrial producers nationwide fell by 1.9% YoY, with the rate of decline narrowing by 0.3 percentage points compared with the previous month; on a monthly basis, they increased by 0.2% MoM, with the rate of increase expanding by 0.1 percentage points from the previous month. The purchase prices of industrial producers decreased by 2.1% YoY, with the rate of decline narrowing by 0.4 percentage points compared with the previous month; they rose by 0.4% MoM, with the rate of increase expanding by 0.3 percentage points from the previous month. For the full year of 2025, the ex-factory prices of industrial producers decreased by 2.6%, and the purchase prices of industrial producers fell by 3.0%. Dong Lijuan, Chief Statistician of the Urban Department of the National Bureau of Statistics (NBS), interpreted the CPI and PPI data for December 2025. Consumer Prices Rose 0.8% YoY in December 2025 In December 2025, the national consumer price index (CPI) increased by 0.8% year-on-year. Specifically, prices in urban areas rose by 0.9%, while those in rural areas rose by 0.6%; food prices increased by 1.1%, and non-food prices increased by 0.8%; prices of consumer goods went up by 1.0%, and prices of services increased by 0.6%. In December, the national consumer price index rose by 0.2% month-on-month. Specifically, prices in urban areas increased by 0.2%, and those in rural areas increased by 0.2%; food prices rose by 0.3%, and non-food prices rose by 0.1%; prices of consumer goods increased by 0.3%, while service prices remained flat. For the full year of 2025, the national consumer price index remained unchanged compared with the previous year. I. Year-on-Year Changes in Prices of Various Goods and Services In December, prices of food, tobacco, and alcohol increased by 0.8% year-on-year, contributing approximately 0.24 percentage points to the rise in the CPI. Within the food category, prices of fresh vegetables increased by 18.2%, contributing about 0.39 percentage points to the CPI increase; prices of fresh fruits rose by 4.4%, contributing about 0.09 percentage points; prices of aquatic products increased by 1.6%, contributing about 0.03 percentage points; prices of eggs decreased by 12.7%, dragging down the CPI by approximately 0.09 percentage points; prices of livestock meat fell by 6.1%, dragging down the CPI by about 0.19 percentage points (with pork prices down 14.6%, contributing to a 0.20 percentage point decline in the CPI); and prices of grains decreased by 0.3%, dragging down the CPI by about 0.01 percentage points. Among the other seven categories, five saw price increases and two experienced decreases on a YoY basis. Specifically, prices for other articles and services, household articles and services, and healthcare rose by 17.4%, 2.2%, and 1.8%, respectively, while prices for clothing, and education, culture, and recreation increased by 1.7% and 0.9%, respectively; prices for transportation and communication, and housing dropped by 2.6% and 0.2%, respectively. II. Month-over-Month Changes in Prices of Various Goods and Services In December, prices for food, tobacco, and alcohol increased by 0.2% MoM, contributing approximately 0.05 percentage points to the rise in the CPI. Within the food category, fresh fruit prices rose by 2.6%, contributing about 0.05 percentage points to the CPI increase; fresh vegetable prices increased by 0.8%, contributing about 0.02 percentage points; prices for livestock meat decreased by 0.8%, contributing about 0.02 percentage points to the CPI decline, among which pork prices fell by 1.7%, contributing about 0.02 percentage points to the CPI decrease. Among the other seven categories, four saw price increases, two remained flat, and one decreased on a MoM basis. Specifically, prices for other articles and services and household articles and services rose by 2.8% and 0.4%, respectively, while prices for education, culture, and recreation and healthcare both increased by 0.1%; prices for clothing and transportation and communication remained unchanged; housing prices declined by 0.1%. In December 2025, the YoY Decline in Industrial Producer Ex-Factory Prices Narrowed, While the MoM Increase Expanded In December 2025, the ex-factory prices of industrial producers nationwide decreased by 1.9% YoY, with the decline narrowing by 0.3 percentage points from the previous month; they increased by 0.2% MoM, with the rise expanding by 0.1 percentage points from the previous month. The purchase prices of industrial producers fell by 2.1% YoY, with the decline narrowing by 0.4 percentage points from the previous month; they rose by 0.4% MoM, with the increase expanding by 0.3 percentage points from the previous month. For the full year of 2025, the ex-factory prices of industrial producers decreased by 2.6%, and the purchase prices of industrial producers dropped by 3.0%. I. Year-over-Year Changes in Industrial Producer Prices In December, within the ex-factory prices of industrial producers, the price of means of production decreased by 2.1%, contributing approximately 1.53 percentage points to the overall decline in the ex-factory price index. Among these, mining industry prices fell by 4.7%, raw material industry prices dropped by 2.6%, and processing industry prices declined by 1.6%. The price of means of subsistence decreased by 1.3%, contributing approximately 0.35 percentage points to the overall decline in the ex-factory price index. Among these, food prices fell by 1.5%, clothing prices decreased by 0.1%, prices of general daily necessities increased by 1.4%, and prices of durable consumer goods dropped by 3.5%. Within the purchase prices of industrial producers, prices for building materials and non-metallic products decreased by 6.4%, fuel and power prices fell by 5.7%, chemical raw material prices dropped by 4.9%, agricultural and sideline product prices declined by 4.1%, ferrous metals prices decreased by 3.3%, and textile raw material prices fell by 1.9%; prices for non-ferrous metals and wires increased by 10.5%. II. MoM Changes in Producer Prices for Industrial Products In December, ex-factory prices for means of production rose 0.3% MoM, boosting the overall ex-factory price index by approximately 0.24 percentage points. Specifically, prices for mining products increased 0.8%, raw material industry prices rose 0.6%, and processing industry prices edged up 0.2%. Prices for consumer goods remained flat. Within this category, food prices fell 0.1%, clothing prices increased 0.2%, prices for general daily necessities rose 0.5%, and prices for durable consumer goods declined 0.2%. Among purchased prices for industrial producers, prices for non-ferrous metals and wires climbed 2.5%, prices for fuel and power increased 1.5%, and prices for building materials and non-metals rose 0.1%. Conversely, prices for ferrous metals dropped 0.4%, prices for chemical raw materials decreased 0.2%, and prices for agricultural by-products and textile raw materials both fell 0.1%. CPI YoY Growth Continued to Widen, PPI YoY Decline Narrowed in December 2025 —Dong Lijuan, Chief Statistician of the Urban Department of the National Bureau of Statistics (NBS), Interprets CPI and PPI Data for December 2025 In December, policies and measures to expand domestic demand and promote consumption continued to take effect, coupled with the approaching New Year's Day, leading to increased consumer demand. The consumer price index (CPI) rose 0.2% MoM and 0.8% YoY. The core CPI, which excludes food and energy prices, increased 1.2% YoY. Influenced by factors such as the transmission effect of international commodity prices and the ongoing effectiveness of policies related to capacity management in key domestic industries, the producer price index (PPI) increased 0.2% MoM but declined 1.9% YoY. I. CPI Turned from Decline to Increase MoM, YoY Growth Continued to Widen, Core CPI Rose 1.2% The CPI shifted from a 0.1% decline the previous month to a 0.2% increase MoM. The MoM increase was mainly driven by rising prices of industrial consumer goods excluding energy. Prices for industrial consumer goods excluding energy rose 0.6%, contributing approximately 0.16 percentage points to the MoM increase in CPI. Specifically, the effects of policies to boost consumption continued to show, and with the New Year's Day holiday approaching, residents' shopping and entertainment demand increased, leading to price increases for communication devices, maternal and child products, recreational durable goods, and household appliances, with gains ranging between 1.4% and 3.0%. Influenced by rising international gold prices, domestic gold jewelry prices surged 5.6%. Energy prices fell 0.5%; affected by changes in international oil prices, domestic gasoline prices dropped 1.2%, dragging the CPI down by about 0.04 percentage points MoM. Food prices increased 0.3%, contributing approximately 0.05 percentage points to the MoM rise in CPI. Among them, pre-holiday consumer demand increased, with prices of fresh fruits and shrimp/crab rising by 2.6% and 2.5%, respectively; weather conditions were relatively favorable, and fresh vegetable prices rose by 0.8%, with the increase being 3.3 percentage points lower than the seasonal level; hog capacity remained relatively ample, and pork prices fell by 1.7%. CPI rose by 0.8% YoY, with the increase expanding by 0.1 percentage points from the previous month, rebounding to the highest level since March 2023. The expansion in the YoY increase was mainly driven by a larger rise in food prices. Food prices increased by 1.1%, with the growth rate widening by 0.9 percentage points from the previous month, contributing approximately 0.17 percentage points more to the YoY CPI increase compared to the prior month. Within food items, price increases for fresh vegetables and fresh fruits expanded to 18.2% and 4.4%, respectively, jointly contributing about 0.16 percentage points more to the YoY CPI increase than the previous month; prices of beef, mutton, and aquatic products rose by 6.9%, 4.4%, and 1.6%, respectively, with all seeing expanded increases; pork prices fell by 14.6%, with the decline narrowing slightly. Energy prices dropped by 3.8%, with the decline widening by 0.4 percentage points from the previous month, among which gasoline prices fell by 8.4%, with the decline expanding. Core CPI, excluding food and energy, rose by 1.2% YoY, maintaining an increase above 1% for the fourth consecutive month. Service prices increased by 0.6%, contributing about 0.25 percentage points to the YoY CPI increase. Among these, household service prices rose by 1.2%; rental prices fell by 0.3%. Prices of industrial consumer goods, excluding energy, increased by 2.5%, contributing about 0.63 percentage points to the YoY CPI increase. Among these, gold jewelry prices continued to expand, rising by 68.5%; prices of household appliances and daily household articles increased by 5.9% and 3.2%, respectively, with both seeing expanded growth; prices of fuel-powered cars and new energy cars fell by 2.4% and 2.2%, respectively, with the declines narrowing. II. PPI MoM Increase Expanded, YoY Decline Narrowed PPI rose by 0.2% MoM, marking the third consecutive month of increase, with the growth rate expanding by 0.1 percentage points from the previous month. The main characteristics of this month's PPI MoM performance: First, improved supply-demand structure drove price increases in some industries. The ongoing effects of capacity management and comprehensive rectification of market competition order in key industries continued to show results, with coal mining and washing, and coal processing prices rising by 1.3% and 0.8% MoM, respectively, both increasing for the fifth consecutive month; lithium-ion battery manufacturing prices rose by 1.0%, and cement manufacturing prices increased by 0.5%, both rising for the third consecutive month; new energy vehicle manufacturing prices shifted from a 0.2% decline in the previous month to a 0.1% increase. Seasonal demand increases drove prices in gas production and supply, and production and supply of electric power and heat power to rise by 1.2% and 1.0%, respectively; down processing and wool textile dyeing and finishing processing prices increased by 1.2% and 1.0%, respectively. Second, imported factors led to divergent price trends in domestic non-ferrous metals and petroleum-related industries. Rising international non-ferrous metal prices boosted domestic non-ferrous metal mining and dressing, as well as smelting and pressing prices, up 3.7% and 2.8% MoM, respectively, with silver smelting, gold smelting, copper smelting, and aluminum smelting prices rising 13.5%, 4.8%, 4.6%, and 0.9%, respectively. Falling international crude oil prices led to declines of 2.3% and 0.9% in domestic petroleum extraction and refined petroleum product manufacturing prices, respectively. The PPI fell 1.9% YoY, with the decline narrowing by 0.3 percentage points from the previous month. Domestic macro policies continued to take effect, with some industries showing positive price changes. First, the development of a unified national market advanced, with YoY declines in related industry prices narrowing for several consecutive months. As market competition order continued to improve, the declines in coal mining and washing, lithium-ion battery manufacturing, and PV equipment and components manufacturing prices narrowed by 2.9, 1.2, and 0.4 percentage points from the previous month, respectively, marking the fifth, fourth, and ninth consecutive months of narrowing. Second, the cultivation of new quality productive fuels drove YoY price increases in related industries. With robust growth in digital economy-related industries, rapid expansion in new raw materials and materials production, and continuous empowerment from green transformation, prices rose for external storage devices and components (15.3%), biomass liquid fuels (9.0%), graphite and carbon product manufacturing (5.5%), finished integrated circuits (2.4%), comprehensive utilization of waste resources (0.9%), and service consumer robot manufacturing (0.4%). Third, effective release of consumption potential boosted YoY price increases in relevant industries. As initiatives to boost consumption were implemented, cultural, sports, and quality consumption grew rapidly, driving price increases for arts, crafts, and ceremonial product manufacturing (23.3%), sports ball manufacturing (4.0%), traditional Chinese musical instrument manufacturing (2.0%), and nutritional food manufacturing (1.5%).

Today, the most-traded BC copper 2602 contract opened at 88,830 yuan/mt and closed higher intraday. During the night session, BC copper surged to 92,510 yuan/mt after opening. The day session opened at the bottom of 89,430 yuan/mt, then maintained rangebound fluctuations at high levels. In the afternoon trading hours, copper prices' center dropped sharply as bulls reduced positions, eventually closing at 88,390 yuan/mt, down 440 yuan/mt, a decrease of 0.5%. Open interest reached 5,974 lots, an increase of 2,138 lots from the previous trading day, while trading volume reached 23,777 lots, up 14,325 lots from the previous session. On the macro front, although U.S.-Ukraine peace talks were reportedly close to reaching a security agreement, core differences such as territory remained. Domestically, China's Ministry of Finance clarified that it will implement a package of measures next year to expand fiscal spending, promote consumption, and stabilize employment to boost the economy. On the fundamentals side, supply remained tight as imported arrivals were low, while demand-side purchasing sentiment continued under pressure due to rising copper prices, resulting in an overall weak supply-demand dynamic. In terms of inventory, as of Monday, December 29, SMM's copper inventories in mainstream regions across China increased 10.95% WoW, with total inventories up 101,700 mt YoY. SHFE copper contract 2602 closed at 98,860 yuan/mt. Based on BC copper 2601's closing price of 88,390 yuan/mt, its post-tax price was 99,881 yuan/mt, resulting in a price spread of -1,021 yuan/mt between SHFE copper 2601 and BC copper contracts. The spread remained inverted and narrowed from the previous day.

【SMM News Flash】Minister of Finance Lan Fo'an stated at the National Fiscal Work Conference held from December 27 to 28 that fiscal policies will vigorously boost consumption next year. The government will thoroughly implement special actions to stimulate consumption, continue to allocate funds to support the trade-in policy for consumer goods, and adjust and optimize the scope and standards of subsidies.

In mid-December 2025, the Passenger Car Association and CAAM successively released data related to the automotive industry and passenger car market for November 2025. In November, auto production and sales continued their strong performance. Enterprises seized the policy window period, and production supply maintained a rapid pace. On a high base, both production and sales achieved growth on both a MoM and YoY basis... SMM compiled relevant data for the automotive market and power battery market in October for readers' reference. Automotive Sector CAAM: November Auto Production and Sales Hit Record High; Jan-Nov Auto Production and Sales Both Exceeded 31 Million Units In November, auto production and sales reached 3.532 million and 3.429 million units, respectively, up 5.1% and 3.2% MoM, and up 2.8% and 3.4% YoY, respectively. Monthly production exceeded 3.5 million units for the first time, setting a historical record. From January to November, auto production and sales reached 31.231 million and 31.127 million units, respectively, up 11.9% and 11.4% YoY, respectively. The growth rates of production and sales narrowed by 1.3 and 1 percentage point(s), respectively, compared to January-October. CAAM: Jan-Nov NEV Production and Sales Both Exceeded 15 Million Units; NEV Sales Accounted for 47.5% of Total New Auto Sales In November, NEV production and sales reached 1.88 million and 1.823 million units, respectively, up 20% and 20.6% YoY, respectively. NEV sales accounted for 53.2% of total new auto sales. From January to November, NEV production and sales reached 14.907 million and 14.78 million units, respectively, up 31.4% and 31.2% YoY, respectively. NEV sales accounted for 47.5% of total new auto sales. CAAM: November Auto Exports Hit Record High, Exceeding 700,000 Units for the First Time In November, auto exports reached 728,000 units, up 9.3% MoM and 48.5% YoY. This month's export volume exceeded 700,000 units for the first time in history. From January to November, auto exports reached 6.343 million units, up 18.7% YoY. Chen Shihua, Deputy Secretary General of CAAM, revealed that China's full-year auto exports for 2025 are expected to challenge 7 million units. CAAM: Jan-Nov NEV Exports Reached 2.315 Million Units, Doubling YoY In November, NEV exports reached 300,000 units, up 17.3% MoM and 2.6 times YoY. Among these, passenger NEV exports were 294,000 units, up 17.7% MoM and 2.8 times YoY; commercial NEV exports were 7,000 units, up 4.2% MoM and 41% YoY. From January to November, NEV exports reached 2.315 million units, doubling YoY . Among them, passenger NEV exports totaled 2.238 million units, doubling YoY, while commercial NEV exports reached 77,000 units, up 1.2 times YoY. The China Passenger Car Association (CPCA) recently released data on the passenger vehicle market for November 2025. According to CPCA data, retail sales of passenger vehicles nationwide in November reached 2.225 million units, down 8.1% YoY and down 1.1% MoM. Cumulative retail sales from the beginning of the year reached 21.483 million units, up 6.1% YoY. The cumulative growth rate of domestic vehicle retail sales this year started at 1.2% from January to February, rose to 15% from March to June, hovered around 6% from July to September, and pulled back to a relatively low level from October to November, showing a deceleration characteristic of a high base in Q4, which basically aligns with the "low start, high middle, and flat end" trend predicted at the beginning of the year. For passenger NEVs, retail sales in November reached 1.321 million units, up 4.2% YoY and up 3.0% MoM; cumulative retail sales from January to November reached 11.472 million units, up 19.6%. Retail sales of conventional fuel-powered passenger vehicles in November were 900,000 units, down 22% YoY and down 7% MoM; cumulative retail sales from January to November were 10.01 million units, down 6%. Regarding exports, the CPCA stated that with the scale advantages and market expansion demands of Chinese NEVs, China-made NEV brand products are increasingly going global, with continuously growing recognition overseas. Passenger NEV exports in November reached 284,000 units, up 243.3% YoY and up 19.3% MoM. They accounted for 47.3% of passenger vehicle exports, an increase of 26.3 percentage points compared to the same period last year; among them, pure electric vehicles accounted for 57% of NEV exports (74% in the same period last year), with A00 and A0 segment pure electric vehicles, as the core focus, accounting for 61% of pure electric vehicle exports (59% in the same period last year). Regarding the November passenger vehicle market, the CPCA stated that due to the rapid growth earlier this year, the policy subsidies themselves aimed to stabilize the overall growth rate, so the phenomenon of stabilizing the growth rate towards year-end is a reasonable trend. The ultra-high base in November last year and the slight negative growth in November this year smoothed out last year's high growth; compared to November 2022, growth still reached 5%, so the overall trend remains relatively normal. An important policy for adjusting the growth rate this year was the trade-in subsidy. As of October 22, 2025, applications for the automotive trade-in subsidy exceeded 10 million units, and the number of applications in the first 11 months reached 11.2 million units. With the large-scale suspension of local subsidies, the daily average subsidy volume dropped to 30,000 units in November, showing a significant effect on growth rate adjustment. According to the CPCA's analysis, the passenger vehicle market in November 2025 exhibited the following characteristics: First, production, exports, and wholesale of passenger vehicles by manufacturers all hit record highs for the month, with exports reaching a new all-time high for any month. Second, the proprietary brands of major state-owned groups showed strong growth; the combined sales of proprietary brands from six major state-owned groups, including Dongfeng, SAIC, FAW, BAIC, Chery, and Changan, increased 3% YoY in November. Among them, proprietary second-generation brands from groups like JiHu, VOYAH, and Shenlan saw particularly strong growth. Third, with many new models launched this year and the advancement of "anti-involution" efforts to curb disorderly price cuts, NEV promotions remained at 10% in November, and the overall trend was stable. Fourth, domestic retail sales of internal combustion engine vehicles in November fell 22% YoY; retail sales of the pure electric market grew 9.2% YoY, while the extended-range market fell 4.3% YoY, and the plug-in hybrid market declined 2.8% YoY. The structure of pure electric versus extended-range models among new automakers shifted from 57%:43% in November last year to 73%:27% this November. Fifth, the domestic retail penetration rate of NEVs reached 59.3% in November, showing steady growth underpinned by policies such as vehicle retirement and renewal, replacement subsidies, and exemptions from NEV purchase taxes. Sixth, from January to November 2025, exports of proprietary internal combustion engine passenger vehicles totaled 2.61 million, down 8%, while exports of proprietary NEVs reached 1.78 million, up 139%; NEVs accounted for 40.6% of proprietary exports. Seventh, retail sales of Korean and French brands grew 13% and 6% YoY, respectively, becoming highlights of growth. The CAAM commented that in November, automotive production and sales continued to perform well. Enterprises seized the policy window period, maintaining a rapid pace in production and supply. On a high base, both production and sales achieved growth MoM and YoY. Among them, the passenger vehicle market operated steadily, the commercial vehicle market continued to improve, NEVs performed strongly, and automotive exports grew rapidly. Regarding power batteries, from January to November, the cumulative sales of power and other batteries in China reached 1,412.5 GWh, up 54.7% YoY. In November, sales of power and other batteries in China were 179.4 GWh, up 8.1% MoM and 52.2% YoY. Among them, power battery sales were 134.0 GWh, accounting for 74.7% of total sales, up 7.8% MoM and 52.7% YoY; sales of other batteries were 45.4 GWh, accounting for 25.3% of total sales, up 8.9% MoM and 50.7% YoY. From January to November, cumulative sales of power and other batteries in China reached 1,412.5 GWh, up 54.7% YoY. Among them, cumulative sales of power batteries were 1,044.3 GWh, accounting for 73.9% of total sales, up 50.3% YoY; cumulative sales of other batteries were 368.2 GWh, accounting for 26.1% of total sales, up 68.9% YoY. From January to November, domestic power battery installations totaled 671.5 GWh, up 42.0% YoY. In November, domestic power battery installations reached 93.5 GWh, up 11.2% MoM and 39.2% YoY . Among them, ternary battery installations were 18.2 GWh, accounting for 19.4% of total installations, up 9.9% MoM and 33.7% YoY; LFP battery installations were 75.3 GWh, accounting for 80.5% of total installations, up 11.6% MoM and 40.7% YoY. From January to November, domestic power battery installations totaled 671.5 GWh , up 42.0% YoY . Among them, ternary battery installations totaled 125.9 GWh, accounting for 18.8% of total installations, up 1.0% YoY; LFP battery installations totaled 545.5 GWh, accounting for 81.2% of total installations, up 56.7% YoY. Multiple New EV Makers Achieve Annual Sales Targets Ahead of Schedule in November, Leap Motor Continues to Lead The chart below, compiled by Cailianshe, shows the November sales figures of some A/H-listed automakers as follows: As November sales data for new EV makers were released, Leap Motor performed outstandingly, continuing to refresh the monthly sales record for new EV makers. Data showed that Leap Motor delivered 70,327 new vehicles in November, up over 75% YoY, marking the ninth consecutive month of growth. In 2025, Leap Motor delivered a total of 536,132 new vehicles, up 113.42% YoY. Previously, Leap Motor had set its 2025 sales target at 500,000 units. As early as November 15, it announced that its cumulative sales for 2025 had exceeded 500,000 units, achieving its annual sales target ahead of schedule. While announcing the delivery figures, Leap Motor Chairman Zhu Jiangming set higher goals for the company's development on the same day, stating that Leap Motor achieved its annual sales target of 500,000 units 45 days ahead of schedule and would aim for a sales target of 1 million units in 2026. In addition, both XPeng Motors and NIO delivered over 36,000 units in November, but recorded varying degrees of decline compared to October, though both showed growth YoY. XPeng Motors delivered 36,728 new vehicles in November, up 19% YoY. From January to November 2025, XPeng Motors delivered a total of 391,937 units, up 156% YoY. Public information shows that XPeng Motors' 2025 sales target was 380,000 units, and the current results indicate that XPeng Motors also achieved its annual sales target ahead of schedule. NIO delivered 36,275 new units in November, up 76.3% YoY; cumulative deliveries for 2025 reached 277,893 units, up 45.62% YoY. Xiaomi Auto maintained a delivery volume of over 40,000 units in November, exceeding the annual target of 350,000 units set at the beginning of 2025. Since April 3, 2024, to December 2, 2025, Xiaomi Auto has cumulatively delivered more than 500,000 units. As the undisputed leader in domestic EVs, BYD continued to outperform in sales, selling 480,186 units in November, setting a new high for the year. From January-November, auto sales reached 4.18 million units, up 11.3% YoY. It is worth noting that BYD, which often ranks first in overall auto sales, was surpassed by SAIC in September and October of this year but reclaimed the top spot in November. At a recent extraordinary shareholders' meeting, BYD Chairman Wang Chuanfu addressed the decline in domestic market sales for the first time, stating that it was partly due to BYD's current technological lead not being as strong as in previous years. Additionally, user pain points such as slow charging speeds in low temperatures need to be resolved through technological breakthroughs. Wang Chuanfu also hinted, "I say the technology is not leading enough now because there will be significant technological releases later, but I cannot disclose them at present." Cui Dongshu, Secretary General of the China Passenger Car Association, stated that the cumulative growth rate of retail sales in the domestic car market in 2025 showed a phased characteristic: cumulative growth from January-February was 1.2%, from March-June it climbed to 15%, from July-September it pulled back to around 6%, and from October-November it further entered a lower range, generally aligning with the initial forecast of 'low at the beginning, high in the middle, and flat at the end.' Cui Dongshu noted that under the strong support of nearly 400 billion yuan in tax exemptions and subsidies, the car market in 2025 achieved growth beyond expectations, but this also puts considerable pressure on the growth of the car market in 2026. "From the perspective of ensuring a good start for the 14th Five-Year Plan, we should not overly deplete the growth potential for next year at the end of 2025." With the approach of year-end, many regions have introduced measures to subsidize car consumption. On December 8, 2025, Shenyang launched its winter car consumption subsidy program, distributing a total of 50 million yuan in car consumption subsidies. On December 5, Qingdao released the Implementation Rules for the "Qingdao Warm Winter" New Car First Insurance Consumption Subsidy Activity, continuing to provide consumption subsidies for the first insurance of new cars, with a maximum subsidy of 8,000 yuan per vehicle. It is reported that, in addition to Shenyang and Qingdao, other regions conducting car consumption subsidy activities in December include Qinzhou and Hangzhou. For example, Qinzhou City established three subsidy tiers, planning to distribute over 700 subsidy quotas. Eligible car buyers must purchase new passenger vehicles from participating auto sales enterprises in Qinzhou during the event period according to the activity rules, with no restrictions on household registration or vehicle licensing region. Looking ahead to December, the Passenger Car Association stated that there are 23 working days in December 2025, one more day compared to the same period last year and three more days than November's 20 working days, providing relatively ample time for production and sales. New energy vehicle retail sales in December are expected to be very strong. Influenced by the expiration of the new energy vehicle purchase tax exemption this year and the policy next year increasing the purchase tax by 5 percentage points, consumers have a greater sense of urgency for year-end car purchases, leading them to consider delivery timelines more carefully when choosing car models. To address the rising car purchase costs caused by extended delivery cycles, automakers have introduced purchase tax subsidy schemes. These safety-net measures are only temporary actions for this year-end and are unsustainable in the future. Consumers are significantly influenced by the car purchase environment and atmosphere; due to long waiting lists for popular models, many consumers turn to readily available models, which drives sustained heat in the auto market consumption and further boosts new energy vehicle sales. Due to higher profits from overseas sales, the trend of "go global or be out" is evident, with export growth exceeding expectations. Since H2, China's auto export situation has continued to improve, with independent new energy vehicles gaining increasing recognition in overseas markets, rapid expansion of overseas marketing networks, and good growth in some overseas markets. The new parallel export policy is about to be implemented, and there is high enthusiasm for parallel exports of 0-kilometer used cars this year, forming a sharp contrast with the sluggish parallel imports. For the full year, CAAM indicated that the domestic auto demand market has effectively improved driven by the combined effects of policies, new momentum is accelerating its release, and foreign trade has shown good resilience. Auto production and sales for the full year are expected to hit another record high, achieving a successful conclusion to the "14th Five-Year Plan". The Political Bureau of the CPC Central Committee held a meeting on December 8 to analyze and study economic work for 2026, clarifying that next year's economic work should adhere to seeking progress while maintaining stability and improving quality and efficiency. Not long ago, the Ministry of Industry and Information Technology and five other departments jointly issued the "Implementation Plan on Enhancing the Supply-Demand Adaptability of Consumer Goods to Further Promote Consumption". The relevant meeting spirit and policy documents release positive signals, helping to boost development confidence, stabilize market expectations, expand auto consumption across the entire chain, and lay a solid foundation for a good start to the "15th Five-Year Plan".