1. China’s high value-added industries rebounded in August in their contribution to total economic inputs, according to a Caixin index. [para. 1] The Caixin BBD New Economy Index (NEI) rose 1.2 points from July to 35, meaning new economy industries accounted for 35% of the country’s overall economic inputs. [para. 1][para. 2] The increase was driven chiefly by growth in labor and capital inputs. [para. 1]
2. The NEI uses big data to track the size of China’s new economy industries. [para. 3] It measures labor, capital, and technology inputs in 10 emerging industries relative to those used across all industries, providing a monthly read on the sector’s weight in the economy. [para. 3]
3. Labor inputs, the largest component with a 40% weighting, rose 1.6 points to 24.5. [para. 4] The labor subindex tracks salaries and the number of positions at new economy companies, so the gain points to stronger hiring and pay in these industries during August. [para. 4]
4. Capital inputs, which carry a 35% weight in the index, climbed 1.4 points month-on-month to 48.2. [para. 5] At 48.2, the capital gauge stood well above the labor and technology readings, making it the strongest of the three subindices. [para. 5]
5. Technology inputs rose only slightly, edging up 0.3 points to 33.3. [para. 6] That subindex, with a 25% weighting, measures the number of research personnel recruited by the tracked industries, as well as the number of inventions created and patents obtained. [para. 6] The small gain made technology the least dynamic of the three components in August, lagging the advances in labor and capital inputs. [para. 4][para. 5][para. 6]
6. Launched in March 2016, the NEI defines a new economy industry as one that is technology- and human-capital-intensive but asset-light, experiences sustainable and rapid growth, and is strategically encouraged by the government. [para. 7] This definition underpins the selection of the 10 tracked industries and the construction of the three input subindices. [para. 7][para. 3]
7. Among the 10 industries tracked, the new information technology industry remained the largest contributor to the index, contributing 15.7 points in August. [para. 8] That is roughly 45% of the headline reading of 35, underscoring the sector’s dominant role within China’s new economy. [para. 8][para. 2]
8. Pay levels in the new economy edged lower even as labor input rose. According to data compiled from online career and recruitment websites, the average monthly entry-level salary across the 10 industries was 13,386 yuan, or about $1,990, down 194 yuan month-on-month. [para. 9]
9. The monthly NEI reports are written by Caixin Insight Group and Chinese big-data research firm BBD, in collaboration with the National School of Development at Peking University. [para. 10] The article is part of Caixin’s series on economic indexes, and editor Lin Jinbing is listed as the contact. [para. 11][para. 12]
10. Taken together, the August data show China’s new economy holding a substantial share—roughly a third—of national economic inputs, with labor and capital providing the main upward momentum while technology inputs advanced only modestly. [para. 1][para. 2][para. 4][para. 5][para. 6] Using the stated weights, the subindex changes imply a weighted gain of about 1.2 points (0.64 from labor, 0.49 from capital, and 0.075 from technology), matching the headline increase. [para. 4][para. 5][para. 6] The accompanying chart, titled “China’s New Economy Gauge Rebounds,” traces the index’s rise to 35 in August. [para. 2]
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