The nation's gross domestic product grew by 4.7% year-on-year in the first half of the year. Behind this figure lies a significant structural shift underway within the Chinese economy—the transition from old to new growth drivers.
Preliminary estimates indicate that new growth drivers, represented by high-end manufacturing, the digital economy, and modern services, contributed over 40% to China's economic growth in the first half of the year. In essence, the new forces propelling the economy are accelerating, signaling a quiet transformation.
Examining the New Growth Engines
Take new energy vehicles, a sector where the change is most palpable. In the first half, China's exports of new energy vehicles surged by 120% year-on-year. From urban commuter cars in Europe to family SUVs in Southeast Asia, alongside green products like lithium batteries and photovoltaic panels, these have all become globally sought-after commodities. The mention of "Made in China" once immediately conjured images of clothing, toys, and small goods. Today, new energy vehicles and smart devices are the first things that come to mind, representing the most visible upgrade in economic momentum.
Beyond new energy, the AI boom sweeping the globe has also become a new driver for China's economy. In many smart manufacturing factories in the Yangtze River Delta region, AI has taken on the role of "workshop supervisor": automatically scheduling production for new orders, issuing early warnings before equipment failures, and handling product quality inspection through visual algorithms in seconds. In the first half, computing power centers and AI industrial parks were being rapidly developed across various regions. The growth rate of high-tech manufacturing during this period was more than double the average growth rate for the entire industrial sector.
Another telling phenomenon is the shift in job preferences among young people. The industries receiving the most concentrated influx of resumes are no longer traditional sectors like real estate, finance, and internet companies. Instead, new tracks such as integrated circuits, artificial intelligence, and biomedicine have become the true hotspots. Where talent flows, the future of industry lies, providing the clearest signal of new momentum development.
The Evolution of Traditional Sectors
Some may ask, with new industries booming, are traditional sectors declining? That is not the case. Instead, they are adopting new strategies and undergoing quality upgrades.
Consider a decades-old steel mill in Hebei province. Previously, it was stereotyped as a traditional heavy industry site with towering blast furnaces and heavy dust. Today, it has transformed dramatically: the production line employs low-carbon smelting processes, and a dedicated special steel R&D line has been established. Previously supplying construction rebar for real estate, it now provides high-strength special steel and corrosion-resistant alloy materials for new energy vehicles, offshore wind power, and energy storage equipment, multiplying its value several times over. While it may still appear to be a steel mill, its core has fundamentally changed.
This transformation extends beyond heavy industry. Many traditional, grassroots businesses are also shifting tracks. For instance, coastal garment processing factories that once relied on high-volume, low-margin models have pivoted to flexible custom production lines. They now handle small-batch, multi-style production, using digital systems to fulfill personalized global orders. Traditional industries are no longer a burden for transformation but have instead become the industrial foundation supporting new growth drivers.
Today's Chinese economy is steadily progressing through a phase of structural optimization and momentum transition. With the old foundation remaining stable and new drivers gaining strong momentum, this rapid shift between old and new growth forces is the very foundation for the sustained and steady long-term development of the Chinese economy.
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