The GDP growth of two provinces and one city (Jiangsu, Zhejiang and Shanghai) in the Yangtze River Delta reached or exceeded China's level in the first half of the year, with the regional GDP reaching nearly 8 trillion yuan, according to newly released regional economic data. What is more noteworthy is that as one of the most developed regions in China's manufacturing industry, the growth rate of industrial added value in Jiangsu, Zhejiang and Shanghai in the first half of the year increased from the previous month, indicating that the manufacturing industry is accelerating recovery.

Steady economic growth Ordinary people's "pocketbook"

Statistics show that the GDP of Shanghai in the first half of the year reached 1.39 trillion yuan, a year-on-year growth of 6.9%, 0.2 percentage points higher than that of the same period last year.

Jiangsu's GDP reached 4.08 trillion yuan in the first half of this year, an increase of 7.2% over the same period last year. Zhejiang's GDP reached 2.34 trillion yuan, up 8 percent year on year.

As a region in China that has taken the lead in promoting economic transformation and upgrading, some regions in the Yangtze River Delta, such as Shanghai, once experienced an economic growth rate lower than that of China. However, starting from 2016, this trend has been reversed, and Shanghai's economic growth rate has gradually equaled that of China. All told, the combined economic output of the two provinces and one city in the Yangtze River Delta in the first half of this year was about 7.81 trillion yuan, close to the mark of 8 trillion yuan.

The steady growth of the economy has benefited the people. The per capita disposable income of Shanghai residents reached 29,902 yuan in the first half of this year, ranking first in China, according to the National Bureau of Statistics. The per capita disposable income of residents in Zhejiang and Jiangsu provinces reached 22,163 yuan and 18,266 yuan, respectively, ranking among the top five in China.

In the first half of the Yangtze River Delta's economic development, a prominent phenomenon is that the manufacturing industry is accelerating recovery.

Statistics show that in the first half of the year, Shanghai's industrial added value increased by 7.3%, reversing the trend of negative growth in the same period last year. The total output value of industrial enterprises above designated size in Shanghai grew by 8.2% in the first half of the year, the highest growth rate in the same period since 2012.

The industrial added value of Jiangsu increased by 7.4% year-on-year in the first half of the year, 0.4 percentage points higher than that in the first quarter. Among the 40 industrial categories listed in the first half of this year, the output value of 37 industries increased to varying degrees. In the first half of this year, the industrial added value of Zhejiang increased by 7.7% year-on-year, 0.2 percentage points higher than that in the first quarter. Total profits of industrial enterprises reached 217.2 billion yuan, up 14.4 percent year on year.

The recovery of the manufacturing industry in the Yangtze River Delta is due to the improvement of external demand, and is also related to its own "physical fitness", especially in the aspects of intelligence and automation.

In the injection molding workshop of Yonggao Shares in Taizhou City, Zhejiang Province, high-precision manipulators accurately grasp, and only three or five inspection staff can be seen in the workshop. Zhang Xiankang, administrative manager of AD Group, which is owned by Yonggao Shares, said that since the company implemented the "machine replacement" last year, the number of employees in first-line production has been reduced by 500 people, a decrease of 75%, while the output value has increased by 30%.

Strengthen the system supply guide funds "from virtual to real"

At the same time that the manufacturing industry is picking up, the "empty fire" in the real estate and some financial fields in the Yangtze River Delta has subsided, and the momentum of funds "from real to virtual" has been contained.

Statistics show that in the first half of the year, the added value of the real estate industry in Shanghai reached 70.979 billion yuan, down 17.5% year-on-year. The added value of the real estate industry in Jiangsu province reached 230.21 billion yuan, up 4.1 percent year on year, much lower than the 8.3 percent growth of the province's service industry. The growth rate of real estate added value in Zhejiang was 6.9 percent, also lower than the 9.8 percent growth of the province's service sector.

"Shanghai's economic growth relies less on the financial and real estate industries, and the development of the real economy and the virtual economy is gradually becoming more coordinated." Tang Huihao, deputy director of the Shanghai Bureau of Statistics.

The change is directly related to the government's strengthening of institutional supply. Recently, Shanghai's first batch of pure rental housing land was sold. Because the two plots of land are rented only and not sold, the transaction price is 84 percent lower than the price of nearby residential land sold in the previous year.

Zhejiang Province said that in the first half of this year, the government increased the "discharge management service" reform focusing on the "maximum run once" reform, resolutely broke the "POTS and jars" that dragged down the transformation and upgrading, and comprehensively revitalized the real economy.

The government's active actions have enhanced the confidence of market players. "In the past, when many enterprises became big, they engaged in real estate, and there was a phenomenon of capital shifting from real to virtual. Our enterprises started from industries such as textile and chemical fiber. In the future, sticking to industry is still the only choice to rebuild competitiveness." Miao Hangen, chairman of Jiangsu Shenghong Group, said.

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