China's economic performance report for the first half of the year was released on the 15th. Despite facing a complex situation, the economy has withstood pressure and operated within a reasonable range, continuing its stable development trend. Within this report, three positive signals are particularly clear.
Firstly, the overall economic foundation remains stable. In the first half of this year, China's gross domestic product (GDP) reached 69.6 trillion yuan, a year-on-year increase of 4.7%, which aligns with the full-year economic growth target. Compared to the first half of last year, the GDP increment was 3.6 trillion yuan, marking the largest increase for the same period in the past five years. For an economy of China's immense scale, achieving such growth is not easy. A researcher from the National Information Center at the National Development and Reform Commission pointed out that for a super-large economy, "stability" is always a significant advantage and positive factor. Each percentage point of growth in China's total economic output generates a substantial increment, providing a necessary foundation for structural adjustment, transformation promotion, and cultivating new growth drivers.
Looking at price indicators, which act as an economic "thermometer," the consumer price index (CPI) rose by 1% year-on-year in the first half of the year, while the core CPI, excluding food and energy prices, increased by 1.2%. During the same period, the producer price index (PPI) rose by 1.5% year-on-year. Both price indices are operating within a reasonable range of 1% to 2%. From the perspective of the balance of payments, China's goods trade volume reached a new high in the first half of the year, foreign exchange reserves remained stable above $3.4 trillion, and the RMB exchange rate appreciated by approximately 3% compared to the beginning of the year. Across a series of indicators, the theme of "stability" is evident.
Secondly, accelerated transformation is building momentum for future growth. While China's economic operation remains stable, the "new" characteristics within structural changes have become more pronounced. Data shows that in the first half of this year, new growth drivers represented by high-end manufacturing, the digital economy, and modern services contributed over 40% to China's economic growth. Various industries are accelerating their shift towards "new" and "green" development.
In the first half of the year, industries related to artificial intelligence, such as integrated circuit manufacturing and intelligent vehicle equipment manufacturing, maintained high year-on-year growth exceeding 30%. The retail penetration rate of new energy vehicles exceeded 60% for three consecutive months, driving a 39.3% year-on-year increase in lithium-ion battery production. Increasing investment in technological innovation and industrial upgrading will build more momentum for China's economic growth. A senior researcher from the Academy of Contemporary China and World Studies believes that the development of new quality productive forces is increasingly driving the economy, creating substantial incremental growth.
Thirdly, confronting challenges demonstrates developmental resilience. In the face of challenges such as slowing global trade growth and fluctuations in the international energy market, the Chinese economy has demonstrated strong resilience. Foreign trade, which has been widely described this year as showing "growth exceeding expectations," is a prime example. In the first half of the year, China's total import and export value of goods trade exceeded 25 trillion yuan for the first time in the same period historically. On a monthly basis, it exceeded 4 trillion yuan for four consecutive months.
Behind this counter-trend growth in trade are the proactive adaptations of 267,000 foreign trade enterprises, expanding their cooperative space globally, as well as the gradual expansion of China's trade partnerships. China has implemented a zero-tariff policy for 63 countries and continues to open up, promoting mutual benefit and win-win outcomes. Confronting impacts from Middle East geopolitical conflicts on global energy supply, China has focused on both domestic production and diversified imports. In the first half of the year, domestic production of crude oil, natural gas, and electricity all reached record highs for the same period, ensuring correspondingly sufficient energy supply.
The researcher from the National Information Center noted that China's industrial system is comprehensive, with close coordination between upstream, midstream, and downstream sectors. Even if some industries face external shocks, they can rely on the complete industrial system to absorb and mitigate the impact. The solid foundation accumulated over the long term by the real economy has provided China with room to maneuver in response to changes in the external environment and has become a key source of its developmental resilience.
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