I.          Overview of China's Industrial Economic Development in 2022

(i)              Faced with complex and severe internal and external environments, industrial production has recovered under pressure

(ii)            As corporate profitability remains weak, the profit distribution pattern has improved

(iii)          With strong support from industrial exports, opening-up and cooperation have sped up

(iv)           The industrial structure has been optimized and adjusted, bolstering the momentum of emerging industries

(v)             Innovation and research have become more dynamic, giving rise to a large number of scientific and technological achievements

(vi)           Digital empowerment has been further promoted, producing significant intelligent integration results

(vii)         Regional development is coordinated and stable, pushing industrial agglomeration to a new level

(viii)       The development of enterprises that apply special, sophisticated techniques to produce unique and novel products has been accelerated, seeking to improve weak links and strengthen the foundation

II.       Major Problems and Challenges Facing Industrial Development in China

(i)              Short- and long-term factors are interwoven to disturb the resilience of the industrial chain

(ii)            Small and medium-sized enterprises are faced with growing operating pressure

(iii)          Both internal and external demand is weak

III.    China's Industrial Economic Development Trends in 2023

(i)              The new situation facing industrial development

(ii)            Forecast of industrial development trends in 2023

IV.    Recommendations

(i)              Maintain steady growth in industry by stabilizing expectations

(ii)            Increase endogenous drivers of development by strengthening supporting measures

(iii)          Expand the market space for enterprises by boosting demand

(iv)           Energize market players by creating a favorable business environment

(v)             Promote industrial transformation and upgrading by improving energy efficiency