Caixin
Dec 03, 2020 05:26 PM
ECONOMY

Technology Gains Push Growth in Caixin New Economy Index

A worker welds tower tubes at a wind power equipment factory in Hami, Xinjiang Uygur autonomous region, on Nov. 15
A worker welds tower tubes at a wind power equipment factory in Hami, Xinjiang Uygur autonomous region, on Nov. 15

The contribution of high value-added industries such as new information technology to China’s total economic inputs continued to grow in November, largely boosted by an increase in technology inputs from the previous month, a Caixin index showed.

The Mastercard Caixin BBD New Economy Index (NEI) came in at 30.2 last month, indicating that new economy industries accounted for 30.2% of China’s overall economic input activities. The reading was up from 29.5 in the previous month.

The NEI, which was released Wednesday, aims to track the size of China’s nascent industries by using big data. It measures labor, capital and technology inputs in 10 emerging industries relative to those used by all industries.

The increase in last month’s NEI was mainly due to growth in the subindex for technology inputs. The subindex, which has a 25% weighting, rose 1.5 points month-on-month to 29.7 in November, marking the second consecutive monthly increase.

This gauge measures the number of research personnel recruited by the 10 tracked industries, as well as the number of inventions they have created and patents they have obtained.

The capital input subindex, which has a 35% weighting, increased by 0.2 points from the previous month to 37.1.

The subindex for labor inputs, which has a weighting of 40%, edged up 0.5 points from the previous month to 24.4 in November.

Launched in March 2016, the NEI defines a new economy industry as one that is human capital- and technology-intensive but asset-light, experiences sustainable and rapid growth, and is a strategic new industry encouraged by the government.

Of the 10 tracked industries, the new information technology industry remained the largest contributor in November, making up 10.8 percentage points of the NEI reading. The energy conservation and environmental protection industry ranked second, up from fifth in October and contributing 5 percentage points to the reading.

The average monthly entry-level salary in the 10 industries, based on data compiled from online career and recruitment websites, rose to 12,431 yuan ($1,894) in November, 557 yuan higher than the previous month.

The monthly NEI reports are written by Caixin Data Technology Co. Ltd. and Chinese big-data research firm BBD, in collaboration with the National School of Development at Peking University.

Contact reporter Luo Meihan (meihanluo@caixin.com)

Read more about Caixin’s economic indexes.

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