Nation to boost electronic infotech manufacturing

China has released a two-year action plan to stabilize growth in its vast electronic information manufacturing sector, setting targets for annual output and revenue increases through 2026, as the nation seeks to bolster consumption and secure its role in the global technology race.

The action plan, unveiled by the Ministry of Industry and Information Technology and the State Administration for Market Regulation, aims for an average annual growth rate of about 7 percent in industrial output from large-scale computer, communications and other electronic equipment sectors.

Total revenue in concerning fields such as lithium batteries, photovoltaics and components is expected to rise more than 5 percent per year.

The government has also set specific product benchmarks: server sales exceeding 400 billion yuan ($56 billion), large-screen TVs with more than 40 percent domestic penetration, and further advances in high-end, intelligent personal computers and smartphones.

In one of its strongest passages, the plan stressed the need to "promote domestic and international dual circulation and prudently address international trade barriers".

It urged companies to make full use of China's vast domestic market, strengthen their ability to control entire supply chains, and build resilience against external shocks.

According to the plan, the country will help firms stabilize trade in core products such as mobile phones, computers and televisions, even as global markets face mounting protectionism.

It also doubled down on efforts to back domestic champions. It pledged to "unswervingly promote the use of homebuilt products", and vowed stronger support for key firms in strategic supply chains, particularly in semiconductors, industrial control systems and BeiDou Navigation Satellite System.

Meanwhile, the plan also called for accelerated breakthroughs in 5G and 6G components, semiconductors and intelligent computing, while fostering new markets for smart wearables, intelligent connected vehicles and digital health.

Wang Peng, a researcher at the Beijing Academy of Social Sciences, said: "The electronic information manufacturing industry is a strategic, fundamental and pioneering sector of the national economy. It is a key pillar for stabilizing industrial growth and safeguarding the country's political and economic security.

"The action plan seeks to consolidate existing industrial capacity and foster and expand new growth drivers. By combining government support with market mechanisms, China aims to keep the sector on a steady growth path while positioning it to tap new demand both at home and abroad."

Notably, on the consumer side, the plan seeks to stimulate purchases of PCs, phones and TVs, as well as AI-related consumer equipment through credit support, online marketing, and integration with e-commerce and retail promotions. It is also promoting smart devices in healthcare, transport, education and emergency services to open new growth areas.

Xie Cun, head of the information and communications development department at the MIIT, said: "Thanks to consumption subsidy policies and the push from AI-powered terminals, Chinese consumers' enthusiasm for electronic products has risen. This has fueled faster production and sales of electronic devices in the first quarter of this year."

In the first quarter, output of computer sets reached 85.32 million units, up 9.6 percent year-on-year. Television shipments totaled 8.84 million units, a 4.7 percent increase and the second consecutive quarter of positive growth. In January-February, shipments of 5G smartphones hit 41.62 million units, up 7.6 percent, with domestic brands especially favored by consumers, accounting for 85 percent of shipments, he noted.