China’s New Economy Sector Slumps on Drop in Capital Inputs
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The Caixin NEI fell to 29.9 in August, a one-year low. Photo: AI generated
The contribution of high value-added industries such as biomedicine to China’s total economic inputs slumped to the lowest in a year in August, with a sharp drop in capital inputs, a Caixin index showed Tuesday.
The Caixin BBD New Economy Index (NEI) came in at 29.9, down 3.7 points from the previous month and reaching a one-year low. That indicates that new economy industries accounted for 29.9% of China’s overall economic inputs.
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- The Caixin BBD New Economy Index fell to 29.9 in August 2024, a one-year low, indicating emerging industries made up 29.9% of China’s economic inputs.
- Capital input subindex dropped 5.2 points to 44.1, and technology input fell 4.6 points to 28.4; labor input decreased 1.8 points to 18.5.
- The new information technology sector remained the largest contributor, while the average entry-level monthly salary rose to 13,646 yuan ($1,910).
AI generated, for reference only
Who’s Who
- Caixin Data Technology Co. Ltd.
- Caixin Data Technology Co. Ltd. is a collaborator in producing the monthly Caixin BBD New Economy Index (NEI) reports. These reports track China's nascent industries by measuring labor, capital, and technology inputs across 10 emerging sectors.
- BBD
- BBD, a Chinese big-data research firm, collaborates with Caixin Data Technology Co. Ltd. and the National School of Development at Peking University to produce monthly reports for the Caixin BBD New Economy Index (NEI).
AI generated, for reference only
What Happened When
- March 2016：
- NEI was launched.
- December 2023：
- Previous low for technology inputs subindex prior to August 2025.
- December 2024：
- Previous low for labor inputs subindex prior to August 2025.
- September 2024：
- Previous low for capital inputs subindex prior to August 2025.
- July 2025：
- Reference point: Used as the comparative previous month for multiple August 2025 indicators.
- August 2025：
- Caixin BBD New Economy Index (NEI) hit 29.9, down 3.7 points from July 2025 and reaching a one-year low.
- August 2025：
- Subindex for capital inputs dropped 5.2 points from July 2025 to 44.1, a low not seen since September 2024.
- August 2025：
- Gauge for technology inputs decreased 4.6 points month-on-month to 28.4, the lowest since December 2023.
- August 2025：
- Gauge for labor inputs declined 1.8 points to 18.5, a low not seen since December 2024.
- August 2025：
- Contribution of the new information technology industry fell by 1.1 points to 10.9, although it remained the largest contributor to the index.
- August 2025：
- Average monthly entry-level salary in the 10 industries was 13,646 yuan ($1,910), up 519 yuan from July 2025.
- September 2, 2025：
- Caixin index showed a slump in the contribution of high value-added industries to China’s total economic inputs, reaching the lowest in a year in August 2025.
AI generated, for reference only
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