Beijing’s Modern Manufacturing Industry Taking Precedence over Conventional Energy Guzzling Industries

The modern manufacturing industry in Beijing is on an upswing, with recent reports showing that it soared to 841.53 billion yuan, with 2013 profits rising to an impressive 64.62 billion yuan. These statistics were revealed by Beijing Municipal Bureau of Statistics’ vice director Wu Wanbiao. According to Wanbiao, the profits translate into a 23.2% spike in five years.

The industry’s growth lifeline has witnessed a paradigm shift with heavy industries such as steel making way for medical and automobile manufacturing industries. Take for instance the relocation of steel manufacturer Shougang and the closure of several other energy-guzzling industries. These now account for only a small proportion of all industries in Beijing.

In Beijing, the modern manufacturing sector is eating into a larger share of the market revenue pie. Reports show that the automobile industry is gaining predominance as far as the revenue share is concerned, with a healthy share of 17.6% in the large scale industries in 2013 in Beijing. As compared to 2008, this is an 8.2% increase, making it the manufacturing industry with the highest growth in Beijing. Similarly, the medical industry didn’t disappoint, earning an 18% profit to income ratio in 2013, registering a 5.4% jump over 2008.

The third economic census in Beijing clearly shows that the number of online stores in the city as of 2013 was about 7.9 times higher than the 2008 numbers – this marks an exceptionally commendable growth rate of 54.8% annually. There has been a tenfold rise in volumes of goods that are now being sold via online retail channels. Online sales in Beijing constitute about 15.4% of all successful sales transactions in Beijing from January to November 2014.