National Bureau of Statistics Responds to International Oil Price Fluctuations: China's Energy Supply Security Capacity is Relatively Strong

(Source: China Electricity News)

Reprinted from China Electricity News

Recent fluctuations in international oil prices caused by geopolitical conflicts in the Middle East have raised market concerns. On March 16, Fu Linghui, a spokesperson for the National Bureau of Statistics of China, responded that China has a strong capacity to ensure energy supply and is well-positioned to respond to external market fluctuations.

At the State Council Information Office press conference that day, Fu Linghui stated that since the beginning of the year, China’s industrial production prices have generally shown a narrowing year-on-year decline. In February, the Producer Price Index (PPI) decreased by 0.9% year-on-year, narrowing by 0.5 percentage points from the previous month. The year-on-year decline has narrowed for three consecutive months. On a month-on-month basis, the prices of industrial producers have increased for five consecutive months.

Fu Linghui explained that the improvement in industrial producer prices is mainly driven by increased demand in certain domestic industries, the growth of new driving forces for industrial products, and the rise in international commodity prices.

He mentioned that with the rapid development of China’s “Artificial Intelligence+” sector, electronic component and specialized electronic material manufacturing prices increased by 4.9% year-on-year in February. Recently, prices for storage chips and other components have risen rapidly, largely due to increased domestic computing power demand. The rise in international energy and non-ferrous metal prices has also contributed to the rebound in industrial producer prices. In February, prices for non-ferrous metal smelting and rolling processing increased by 22.1% year-on-year, a significant rise.

Fu Linghui pointed out that there are many uncertainties affecting international energy prices, and the impact on domestic prices still needs to be observed. Moving forward, China will continue to expand domestic demand, optimize supply, develop new quality productivity according to local conditions, deepen the construction of a unified national market, promote industrial product prices back to a reasonable range, improve economic circulation, and ensure the sustained and healthy development of the industrial economy. (Wang Enbo)

Editor: Shen Xinrui

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