China’s industrial capacity utilization rate has fallen to 74.3% in the first quarter of 2023, marking a 1.5% decline compared to the same period last year, according to official data from the National Bureau of Statistics. The figure also dropped by 1.4% from the previous quarter. While the mining sector’s utilization rate came in at 75.2% in Q1, a 1.8% decrease from the same period in 2022, the utilization rate of the manufacturing sector and the production and supply of utilities stood at 74.5% and 71.9%, respectively.
The decline in utilization rates can be attributed to a slowdown in China’s economic growth, which the IMF predicts will improve from 3% in 2022 to 5.2% in 2023. The dip in industrial capacity utilization rates can also be linked to China’s recent push for environmental protection, as many factories have been forced to shut down or reduce production due to stricter regulations.
However, experts suggest that China’s move towards a more sustainable economy will ultimately benefit the country in the long run. By reducing the country’s reliance on heavy industry and increasing its focus on innovation and high-tech manufacturing, China can improve its economic competitiveness and reduce its carbon footprint.