Tax data for the first half of the year, released by authorities, offers a clear snapshot of the national economy. These figures act as a barometer for economic activity and a realistic portrait of steady progress towards high-quality development.
From a sustained rise in business entity activity to an acceleration in industrial structure upgrades, the data highlights key trends. Trillions of yuan in tax and fee cuts are precisely channeled to support technological innovation and manufacturing, while a crackdown on invoice-related irregularities aims to maintain fair market order. This dual approach of support and regulation vividly illustrates the strong underlying foundation of China's economy, which is progressing steadily while improving quality and efficiency.
Data Highlights Show Growing Internal Momentum
According to the tax data, China's economy performed well in the first half of the year, exhibiting four key characteristics. Development is becoming more "real," with the real economy's foundation growing stronger. The proportion of industry, especially manufacturing, in total sales revenue has steadily increased. Sales revenue from industrial enterprises rose 7.1% year-on-year, with manufacturing sales revenue up 7.3%. Industrial enterprises now account for 36% of total corporate sales revenue.
Growth is becoming more "innovative," as new quality productive forces accelerate. Sales revenue from equipment manufacturing, information transmission, software and IT services, and technology services—three sectors closely linked to new quality productive forces—accounted for 23.5% of total corporate sales revenue, up 2.2 percentage points from the same period last year.
Efficiency is becoming "superior," with the quality of business operations steadily improving. Value-based indicators reflecting profitability have improved. In addition to tax revenue, corporate profit metrics have achieved good growth. In the first half of the year, declared profits from the nation's 1 million key tax-source enterprises rose 12.8% year-on-year.
Transformation is becoming "greener," with green development accelerating. Sales revenue from the ecological protection and environmental management sector grew 6.9% year-on-year. Revenue from clean energy power generation, including wind, solar, hydro, and nuclear, increased 17.1% year-on-year, now accounting for 38.8% of total electricity production and sales revenue, up 3.8 percentage points from last year.
Strong Policies Deliver Dual Benefits for People and Enterprises
Since the start of the year, macro policies have been deployed proactively and effectively, with a series of practical measures rolled out sequentially, channeling significant funds directly to the real economy. On the industrial front, tax and fee cuts and refunds under current policies supporting technological innovation and manufacturing development totaled 1.91 trillion yuan in the first half of the year. Combined with other policy incentives, these measures have further unlocked China's long-accumulated innovation potential and consolidated the positive momentum for innovative development. In the first half, the value of R&D equipment and services purchased by enterprises nationwide grew 10.7% and 10.8% year-on-year, respectively, reflecting increased innovation investment.
On the livelihood front, tax adjustments continue to enhance their effectiveness in benefiting the public. In the first half of the year, tax reductions from welfare-oriented policies in areas such as elderly care, healthcare, education, and employment increased 11.8% year-on-year. A total of 126 million people benefited from special additional deductions for personal income tax related to elderly care, healthcare, and education, with tax reductions exceeding 320 billion yuan. In the seventh annual personal income tax settlement, over 70% of filers owed no tax after reconciliation, and among those who paid tax, over 60% were subject to the lowest 3% tax rate. The income-redistributive effect of the personal income tax system is becoming more pronounced.
Stronger Regulation Ensures a Fairer Market Environment
High-quality development requires a market environment of fair competition. Tax authorities have balanced support with regulation, effectively squeezing out economic "bubbles" and clearing up market competition irregularities. On one hand, a tough crackdown on invoice-related problems has accelerated the exit of "shell" companies. In the first half, the invoicing amounts of enterprises identified with such issues fell 37.7% year-on-year, and the "tax content" per 100 yuan of invoices nationwide increased 13.7% compared to 2025. A total of 1.29 million "shell" enterprises were identified, with nearly 700,000 pushed to cancel their registrations, making the data on business entities more solid.
On the other hand, the rule of law is strengthening the foundation of tax collection and management. The official implementation of the Value-Added Tax Law enhances tax system stability, demonstrates legal fairness, and smooths industrial value chains. Reporting of tax-related information by internet platform enterprises has become more standardized. In the first quarter, 9,692 platforms submitted tax information, basically achieving full coverage. The number of platform merchants declaring and paying taxes increased 37% compared to before the relevant regulations were implemented, further narrowing the tax burden gap between online and offline operations.
Tax data records the present while signaling long-term trends. Through these continuously improving tax indicators, we see the real economy's foundation becoming more robust, innovation momentum bursting forth, and the market environment being constantly purified. As China embarks on the first year of the 15th Five-Year Plan period, proactive, comprehensive, pragmatic, and solid efforts will ensure the economy continues on a path of sustained improvement and high-quality growth.
Source: People's Daily Client
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