China's manufacturing sector maintained its growth momentum in March, with the Purchasing Managers' Index (PMI) rising to 50.5 percent, up 0.3 percentage points from February, according to data released by the China Federation of Logistics and Purchasing and the Service Survey Center of the National Bureau of Statistics.

This marks the second consecutive month of expansion for the manufacturing PMI, reflecting sustained recovery in industrial activity and underscoring the robust resilience of the Chinese economy.

Since the start of this year, China's economy has maintained stable growth momentum, with innovation-driven dynamics gaining strength and development trends increasingly aligned with high-quality goals. The two-month PMI expansion highlights multiple positive shifts in the economy, laying a foundation for stable growth throughout the year.

Workers operate at a production line of Chongqing Hwasdan Machinery Manufacturing Co., Ltd. in southwest China's Chongqing Municipality, Feb. 22, 2025. (Photo: Xinhua)

Supply-demand coordination drives PMI expansion

The continuous growth of PMI is a result of the synergetic increase in both supply and demand. In March, the manufacturing new orders index rose to 51.8 percent, up 0.7 percentage points from February and marking the second consecutive month above 51 percent. Accelerating demand has boosted production enthusiasm, with the production index holding steady at 52.6 percent for two straight months. The dual improvement in supply and demand has not only strengthened market confidence but also stabilized corporate expectations. The manufacturing production and business activity expectations index remained at 53.8 percent in March, staying at a healthy level of around 54 percent for six consecutive months.

Amid rising unilateralism and protectionism, China's foreign trade has demonstrated remarkable resilience and vitality. In the first two months of 2024, imports and exports via airports in Chengdu, Southwest China's Sichuan Province, grew 21.8 percent year-on-year, while Shanghai's export scale hit a historic high for the same period. The trade between Guangzhou, capital of South China's Guangdong Province, and ASEAN surged 45.2 percent.

This photo taken on Feb. 26, 2025 shows smart equipment running at a coil factory in Harbin Electric Machinery Company Ltd. in Harbin, northeast China's Heilongjiang Province. (Photo: Xinhua)

PMI expansion mirrors China's innovation dynamics

The PMI expansion also mirrors China's surging innovation vitality. Chinese new energy vehicle manufacturer BYD unveiled its revolutionary e-platform, breaking multiple global records for mass-production technologies. The world's first 30-inch video e-paper display debuted in Guangzhou, marking the arrival of large-format color e-paper in the dynamic display era. The launch of the "Tongze" ultra-large diameter slurry shield tunneling machine represents a breakthrough in China's high-end underground engineering equipment R&D. As new quality productive forces take shape, growth drivers are rapidly strengthening. In March, the new orders index for equipment manufacturing PMI reached its highest level since April 2023.

At the recently concluded Boao Forum for Asia Annual Conference 2025, "innovation" emerged as a key theme in discussions about China's economy. Participants noted that "China's stable growth and technological innovation capabilities are injecting fresh vitality and confidence into regional and global development, positioning the country as a critical driver of global growth." Others emphasized that "Chinese enterprises are achieving rapid technological breakthroughs, with industrial upgrading progressing faster than anticipated." Innovation has become a defining feature of China's manufacturing sector.

A worker prefabricates steel for Bohai Oilfield platform at an intelligent manufacturing base in Tianjin, north China, March 30, 2025. (Photo: Xinhua)

Policy synergy underpins recovery

The PMI expansion is also attributable to coordinated policy support. Measures include issuing 300 billion yuan ($41.3 billion) in ultra-long-term special treasury bonds to boost consumer goods trade-in programs, mobilizing 520 billion yuan to replenish capital for state-owned banks to enhance their capacity to serve the real economy, and rolling out policies to stabilize foreign trade and investment while expanding high-level opening up. These efforts are driving a sustained manufacturing rebound.

From January to February, retail sales of consumer goods grew 4 percent year-on-year, 0.5 percentage points faster than the full-year 2024 rate. Output of high-tech manufacturing enterprises above the designated size rose 9.1 percent, while new energy vehicle production surged 47.7 percent. More proactive macroeconomic policies are expected to further bolster economic recovery and sustain manufacturing growth.

The PMI rebound reflects China's economic resilience and potential. However, external uncertainties persist, necessitating stronger policy coordination, deeper domestic demand stimulation, and accelerated integration of technological and industrial innovation. By addressing these priorities, China aims to consolidate its recovery momentum, achieve stable economic growth, and secure its annual development goals.