As the first half of 2026 draws to a close, China's economy has delivered a mid-year report card rich in substance and quality. With trillion-yuan investments in people's livelihoods taking effect, summer grain output reaching new heights, and novel consumption scenarios flourishing, these achievements underscore the strategic composure of an economy advancing steadily amidst fluctuations. From the vibrant street-level commerce to the hum of factory machinery, the economy's vitality is felt in every subtle yet tangible shift. The confidence underpinning China's economy has never been defined by a single quarter's growth figure; rather, it is rooted in the twin foundations of people's well-being and national security. When these foundations are solid, even the fiercest storms can be weathered; when they are firm, the path ahead stretches far.
First, it is essential to recognize that investments in people's livelihoods are strategically placed where they matter most—the daily lives of countless households. In the first half of 2026, national spending on livelihood programs reached 12.4 trillion yuan, marking a 5.4% year-on-year increase and further strengthening the social safety net. Over 25 million families with infants received childcare subsidies, 24 million children in preschools benefited from free universal early education, and 150 million students were aided by hundred-billion-yuan education support funds. Additionally, targeted measures such as vaccination drives and disability subsidies for rural seniors were implemented with precision. These figures are far from cold fiscal ledgers; they represent a developmental answer that warms the hearts of the people. Livelihood spending is a strategic, long-term investment that accumulates human capital, stabilizes social expectations, and alleviates concerns over childcare, education, and elderly care. From young families to rural seniors, the reach of policy extends to the most granular level, steadying public expectations and, in turn, bolstering consumer confidence. With a super-sized market of over 1.4 billion people, once consumption potential is unleashed, the strategic foundation of domestic demand will be firmly secured.
More critically, the security foundation has bolstered the economy's resilience. Amid frequent global geopolitical conflicts, significant volatility in international oil prices, and a sluggish worldwide recovery, China's long-standing strategic deployments in food and energy security have effectively neutralized external shocks. Domestic oil prices remain stable and controllable, peaking at only two-thirds of international levels. In the first half of the year, domestic oil, gas, and electricity production all hit record highs, with non-fossil energy power generation capacity surpassing 60% of the total for the first time, continuously enhancing energy self-sufficiency. Summer grain output broke through the 300 billion jin mark for the first time, with hundreds of thousands of agricultural machines ensuring a full harvest, firmly securing both the "food bowl" and the "energy bowl." A robust security foundation supports steady economic growth. In the first half of the year, China's GDP grew by 4.7% year-on-year, with an increment of 3.6 trillion yuan—a record high for the same period in the past five years—prompting the International Monetary Fund to raise its growth forecast for China against the global trend. This fully demonstrates that security ensures development, and a solid foundation breeds confidence.
However, a sturdy foundation alone is insufficient; a sustained upward engine is essential. Activating innovation vitality and empowering industrial upgrading are the core drivers of high-quality development. This summer, the consumption market has shown remarkable vibrancy, with smart digital product sales doubling, study tours and cultural tourism surging in popularity, and new business models such as VR experiences, national trend tourism, and immersive consumption continuing to gain traction. Coupled with policy dividends like visa-free transit and departure tax refunds, Chinese cultural trends are reaching global audiences, inbound consumption is steadily recovering, and new supply is effectively creating new demand. Young people are willing to spend on experiences, while seniors are increasingly embracing digital consumption, enriching the market's diversity. Guided by the "15th Five-Year Plan" consumption expansion strategy, the deep integration of technology and culture, alongside coordinated online-offline development, continues to invigorate the consumer market. A comprehensive industrial system, continuously evolving innovation capabilities, and released demographic dividends combine to inject enduring endogenous momentum into economic growth. As this innovation cycle gains traction, the economy's vitality flows more freely.
Adversity forges economic resilience, and forward-looking planning accumulates developmental momentum. The confidence of China's economy stems from prudent strategic layouts and long-term, down-to-earth efforts. Standing at the new starting point of the "15th Five-Year Plan," the combined advantages of a super-sized market, a comprehensive industrial system, and sustained innovation-driven growth serve as the core support for the economy to navigate cycles and fend off risks. By steadfastly prioritizing people's well-being, coordinating development and security, and activating innovation momentum, China's economy is poised to advance steadily along the path of high-quality development. As the twin foundations of livelihood and security grow ever stronger, and as the innovation engine turns ever more dynamically, this report card of quality improvement and stable progress will carry greater weight with each passing year.
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