Core Viewpoint - The article discusses the tax deduction policy for research and development (R&D) expenses, highlighting the eligibility criteria, benefits, and specific conditions for various industries and activities [2][5][20]. Group 1: Eligible Entities - Resident enterprises with sound accounting practices that can accurately collect R&D expenses are eligible for the tax deduction, excluding industries such as tobacco manufacturing, accommodation and catering, wholesale and retail, real estate, leasing and business services, and entertainment [4][9]. Group 2: Benefits of the Policy - R&D expenses that do not form intangible assets can be deducted at 100% of the actual amount incurred starting from January 1, 2023. For expenses that form intangible assets, they can be amortized at 200% of the cost [6][7]. - For integrated circuit and industrial mother machine enterprises, R&D expenses that do not form intangible assets can be deducted at 120% of the actual amount incurred from January 1, 2023, to December 31, 2027. For expenses that form intangible assets, they can be amortized at 220% of the cost during the same period [7]. Group 3: Conditions for Enjoying Benefits - R&D activities must be systematic and aimed at acquiring new scientific and technological knowledge or significantly improving technology, products, or processes. Certain activities, such as routine upgrades or direct applications of existing research, do not qualify for the tax deduction [9][10]. - Enterprises must maintain accurate accounting records for R&D expenses and set up auxiliary accounts for each R&D project to track deductible expenses [9]. Group 4: Special Cases - For commissioned R&D activities, expenses incurred by domestic external institutions can be included at 80% of the actual amount for tax deduction purposes. For commissioned overseas R&D, the same percentage applies, but the total cannot exceed two-thirds of the eligible domestic R&D expenses [11][12]. - In collaborative R&D projects, each party can determine the allocation of R&D expenses based on their actual contributions [13][16]. Group 5: Reporting and Compliance - Taxpayers can choose to enjoy the tax deduction for R&D expenses incurred in the first half of the year or the first three quarters during the prepayment declaration periods in July and October. If not chosen, they can still opt for the deduction during the annual tax settlement [19]. Group 6: Policy References - The article references several official documents that outline the tax deduction policy for R&D expenses, including notifications and announcements from the Ministry of Finance and the State Taxation Administration [21][22].

Economic Overview - In May, the industrial added value of large-scale enterprises increased by 5.8% year-on-year, indicating stable growth in the industrial sector [4][5] - The equipment manufacturing industry saw a significant increase, with added value growing by 9.0%, contributing 54.3% to industrial production [4][5] - The service industry production index rose by 6.2% year-on-year, accelerating by 0.2 percentage points compared to the previous month [4][5] Consumer Trends - The total retail sales of consumer goods increased by 6.4% year-on-year in May, up by 1.3 percentage points from the previous month [5][6] - The growth in retail sales was driven by policies promoting the replacement of old products, particularly in categories such as home appliances and communication devices, which contributed 1.9 percentage points to the total retail sales [7] Employment and Price Stability - The urban unemployment rate in May was 5%, a decrease of 0.1 percentage points from the previous month, indicating a stable employment situation [4][5] - The Consumer Price Index (CPI) showed a slight decline, with core CPI excluding food and energy rising compared to the previous month, reflecting mixed price pressures [5] Trade and Export Performance - In May, the total value of goods imports and exports increased by 2.7% year-on-year, with exports growing by 6.3% [6] - The export of mechanical and electrical products rose by 9.3%, with integrated circuit exports increasing by 18.9%, highlighting strong performance in key export categories [6] Investment and Innovation - Investment in equipment and tools grew by 17.3% in the first five months, contributing 2.3 percentage points to overall investment growth [7] - The high-tech manufacturing sector's added value increased by 8.6%, with digital product manufacturing growing by 9.1%, indicating a robust expansion of new economic drivers [5][10] Future Outlook - The economic foundation remains solid, with policies in place to support stable growth and address external challenges [9][10] - The development of new industries and the upgrading of traditional sectors are expected to continue, with significant growth in areas such as smart manufacturing and digital economy [10][11]

Economic Performance - In May, the total retail sales of consumer goods increased by 6.4% year-on-year, accelerating by 1.3 percentage points compared to the previous month, marking the highest growth rate since 2024 [3] - The production index of the wholesale and retail industry, as well as the accommodation and catering industry, accelerated by 1.6 and 0.9 percentage points respectively compared to the previous month [3] Consumption Trends - The growth in consumption is attributed to the "old-for-new" policy for consumer goods and the initiation of the "618" shopping festival [3] - Retail sales of home appliances, audio-visual equipment, communication equipment, cultural office supplies, and furniture increased by 53%, 33%, 30.5%, and 25.6% year-on-year respectively [3] New Economic Drivers - The service production index grew by 6.2% year-on-year in May, while the added value of equipment manufacturing and high-tech manufacturing increased by 9% and 8.6% respectively, outpacing the overall industrial growth [4] - High-tech service industry investment rose by 11.6% year-on-year from January to May, with aerospace and equipment manufacturing investment growing by 24.2% [4] Employment and Price Stability - The urban unemployment rate in May was 5%, a decrease of 0.1 percentage points from the previous month [5] - The Consumer Price Index (CPI) saw a slight year-on-year decline, while the core CPI, excluding food and energy, showed an expanded increase, indicating stable market supply and demand [5] Policy Outlook - The government has a robust policy toolkit to dynamically adjust macroeconomic policies to ensure stable economic operation [2][5] - New fiscal policies are expected to support consumer goods replacement and may include interest rate cuts [5]

Core Viewpoint - The strong performance of consumption in May has significantly contributed to the stability and progress of China's national economy, showcasing the immense potential of the Chinese market [1][9]. Consumption Performance - In May, China's total retail sales of consumer goods reached 41,326 billion yuan, a year-on-year increase of 6.4%, which is 1.3 percentage points higher than the previous month and the highest growth rate since early 2024 [1][2]. - The growth rate of 6.4% exceeded market expectations, which were around 5% [1][2]. - The month-on-month growth rate was 0.93%, marking the highest rate since May 2023 [1]. Factors Driving Consumption Growth - Several factors contributed to the acceleration of consumption in May, including the "old-for-new" policy for consumer goods, the "6·18" online shopping promotion, and favorable holiday consumption trends [2]. - During the "May Day" and "Dragon Boat Festival" holidays, domestic tourism increased significantly, with a 6.4% year-on-year rise in the number of travelers during the "May Day" holiday [2]. - Retail sales of major household appliances and communication equipment saw substantial year-on-year growth, with increases of 53%, 33%, 30.5%, and 25.6% respectively, contributing 1.9 percentage points to the total retail sales growth [2]. Economic Stability Indicators - From January to May, the retail sales of services increased by 5.2%, with May's service production index growing by 6.2% year-on-year [4]. - The unemployment rate in urban areas was 5% in May, a slight decrease of 0.1 percentage points from the previous month, indicating a stable employment situation [8]. - The Consumer Price Index (CPI) showed a slight year-on-year decrease, but the core CPI, excluding food and energy, indicated a stable market supply and demand relationship [8]. Industrial Production and Trade - In May, the industrial added value for large-scale enterprises grew by 5.8% year-on-year, maintaining a relatively high growth rate despite a slight decrease from the previous month [6][7]. - The total import and export volume in May increased by 2.7% year-on-year, with exports growing by 6.3%, reflecting the diversified development of foreign trade [6]. Future Economic Outlook - The overall economic operation is expected to remain stable in the first half of the year, with GDP growth projected to exceed 5.0% in the second quarter [10]. - The government is advised to implement more proactive macroeconomic policies to stimulate investment and consumption growth [10][11].

Core Viewpoint - The economic data for May indicates a mixed performance, with supply-side growth remaining strong while demand-side indicators show signs of slowing down, particularly in investment and real estate sectors [1][5]. Supply Side: Strong Support - In May, the industrial added value for large-scale enterprises grew by 5.8% year-on-year, slightly above the market expectation of 5.7% [6]. - The manufacturing sector saw a marginal slowdown, with high-tech industries maintaining robust growth rates of 8.6% [6]. - The service sector production index increased by 6.2%, driven by recovering consumer demand and increased holiday travel [9]. Fixed Asset Investment: Real Estate Drag - Fixed asset investment grew by 3.7% year-on-year, below the expected 4.1%, with infrastructure and manufacturing growth rates declining [10]. - Real estate investment saw a significant decline of 10.7%, indicating ongoing challenges in the property market [10][14]. - The construction sector is under pressure due to local government debt and slow issuance of special bonds for projects [10][11]. Consumption: Accelerating Beyond Expectations - Social retail sales increased by 6.4%, significantly higher than the market expectation of 4.8%, with both goods and catering consumption reaching new highs for the year [19]. - The increase in consumption is attributed to policy effects, pre-scheduled shopping festivals, and high demand for electronics and home appliances [19][22]. Outlook: Stabilizing with Localized Pressure - The impact of tariff changes on the economy is expected to weaken, with the second quarter growth likely to exceed earlier market expectations [24]. - However, persistent low prices may continue to erode corporate profits and delay improvements in consumer expectations [24].

Core Viewpoint - The economic resilience and potential of China continue to manifest, with stable economic operation and sustained growth in foreign trade despite external pressures [1][10]. Economic Performance - In May, China's total import and export value increased by 2.7% year-on-year, with exports growing by 6.3% [10]. - The retail sales of consumer goods reached 41,326 billion yuan, marking a year-on-year growth of 6.4%, the highest growth rate since last year [1][9]. Industrial Growth - The industrial added value of enterprises above designated size grew by 5.8% year-on-year in May, supported by policy measures and active adjustments by enterprises [4][8]. - The added value of the equipment manufacturing industry increased by 9%, contributing 54.3% to industrial production [8]. Service Sector Expansion - The service production index rose by 6.2% year-on-year in May, with growth accelerating by 0.2 percentage points compared to the previous month [8]. - Retail and accommodation sectors showed significant growth, with production indices increasing by 1.6 and 0.9 percentage points, respectively [9]. Domestic Demand and Consumption - The growth of retail sales accelerated, particularly in the service sector, with a year-on-year increase of 6.4% in May, up by 1.3 percentage points from the previous month [9]. - Policies promoting consumption, such as trade-in programs and online sales promotions, contributed to the increase in market sales [8]. Innovation and New Growth Drivers - The high-tech manufacturing industry saw an added value growth of 8.6%, while the digital product manufacturing industry grew by 9.1%, both outpacing the overall industrial growth rate [9][12]. - The production of new energy vehicles and solar batteries increased by 31.7% and 27.8%, respectively, indicating robust growth in emerging industries [9]. Employment and Price Stability - The urban unemployment rate in May was 5%, a slight decrease of 0.1 percentage points from the previous month [8]. - The Consumer Price Index (CPI) saw a slight year-on-year decline, while the core CPI, excluding food and energy, showed an expanded increase, indicating stable market supply and demand [8]. Policy Support and Future Outlook - The macroeconomic policies have been effective in stabilizing the economy, with a focus on expanding domestic demand and promoting high-quality development [11][12]. - The policy toolbox is well-stocked, allowing for dynamic adjustments to respond to changing circumstances, ensuring continued support for economic stability [12].

Core Viewpoint - In May, the national service industry production index experienced a year-on-year growth of 6.2%, accelerating by 0.2 percentage points compared to the previous month [1] Industry Breakdown - The information transmission, software, and information technology services sector saw a year-on-year production index increase of 11.2%, which is 5.0 percentage points higher than the overall service industry production index [1] - The leasing and business services sector reported a year-on-year growth of 8.9%, exceeding the overall service industry production index by 2.7 percentage points [1] - The wholesale and retail sector experienced a year-on-year production index growth of 8.4%, surpassing the overall service industry production index by 2.2 percentage points [1]

Economic Overview - In May, the overall economic operation remained stable with signs of improvement, showcasing strong resilience and vitality in China's economy [1][2] - The retail sales of consumer goods in May increased by 6.4% year-on-year, accelerating by 1.3 percentage points compared to the previous month [1] - The industrial production saw a year-on-year increase of 5.8% in May, with a month-on-month growth of 0.61% [1] Service Sector - The service sector's production index grew by 6.2% year-on-year in May, which is an acceleration of 0.2 percentage points from the previous month [1] Fixed Asset Investment - From January to May, the total fixed asset investment (excluding rural households) reached 191,947 billion yuan, reflecting a year-on-year growth of 3.7% [1] Real Estate Market - The real estate market is stabilizing, with the price decline in new residential properties continuing to narrow in May [3][4] - The sales area and sales volume of new commercial housing from January to May decreased by 2.9% and 3.8% year-on-year, respectively, remaining stable compared to the previous four months [3] - The inventory of unsold commercial housing decreased by 7.15 million square meters in May, marking three consecutive months of decline [3] Policy Measures - The implementation of proactive macroeconomic policies has effectively enhanced consumption vitality and supported production growth [5] - The policy toolbox is well-stocked, allowing for dynamic adjustments to respond to changing circumstances, ensuring continued economic stability [6]

Core Viewpoint - The article highlights the stable growth of China's economy in May 2025, driven by effective macroeconomic policies and a focus on high-quality development, despite external uncertainties and domestic demand challenges [1]. Group 1: Industrial Production - In May, the industrial added value of large-scale enterprises increased by 5.8% year-on-year and 0.61% month-on-month, with manufacturing growing by 6.2% [2]. - Equipment manufacturing and high-tech manufacturing sectors saw significant growth, with increases of 9.0% and 8.6% respectively, outpacing overall industrial growth by 3.2 and 2.8 percentage points [2]. - The manufacturing purchasing managers' index was at 49.5%, indicating a slight improvement, while the business activity expectation index rose to 52.5% [2]. Group 2: Service Sector - The service sector production index grew by 6.2% year-on-year in May, with notable increases in information transmission, software, and IT services at 11.2% [3]. - The business activity index for the service sector was at 50.2%, indicating stable growth, while the business activity expectation index reached 56.5% [3]. Group 3: Market Sales - The total retail sales of consumer goods reached 41,326 billion yuan in May, growing by 6.4% year-on-year, with urban retail sales increasing by 6.5% [4]. - The sales of home appliances and communication equipment surged due to the "trade-in" policy, with growth rates of 53.0% and 33.0% respectively [5]. Group 4: Fixed Asset Investment - From January to May, fixed asset investment (excluding rural households) totaled 191,947 billion yuan, with a year-on-year growth of 3.7% [6]. - Manufacturing investment grew by 8.5%, while real estate development investment declined by 10.7% [6]. Group 5: Trade and Employment - In May, the total value of goods imports and exports was 38,098 billion yuan, with exports increasing by 6.3% [7]. - The urban surveyed unemployment rate was 5.0% in May, showing a slight decrease from the previous month [8]. Group 6: Consumer Prices - The Consumer Price Index (CPI) fell by 0.1% year-on-year in May, with core CPI rising by 0.6% [9]. - The prices of food and beverages increased slightly, while transportation and communication prices saw a significant decline of 4.3% [9]. Group 7: Producer Prices - In May, the producer price index for industrial producers decreased by 3.3% year-on-year, indicating ongoing deflationary pressures in the industrial sector [10].

Core Viewpoint - The overall economic operation in May is stable, with some indicators continuing to improve, showcasing strong resilience and vitality in China's economy [1] Economic Performance - In May, the total retail sales of consumer goods increased by 6.4% year-on-year, accelerating by 1.3 percentage points compared to the previous month [1] - From January to May, the service retail sales grew by 5.2%, which is an acceleration of 0.1 percentage points compared to the period from January to April [1] Sectoral Insights - The acceleration in consumption, particularly in service consumption, has positively impacted related service industries, with production index growth in wholesale and retail, as well as accommodation and catering sectors, all accelerating compared to the previous month [1] - New growth drivers such as high-end manufacturing, digital economy, and new energy industries are continuously expanding, effectively promoting industrial transformation and ensuring stable economic operation [1]