China's economic performance for the first half of 2026 was unveiled this morning (15th) by the National Bureau of Statistics. Preliminary calculations indicate the gross domestic product reached 69.5704 trillion yuan, marking a year-on-year increase of 4.7% and a growth increment of 3.6 trillion yuan, representing the largest expansion for the same period in nearly five years. More noteworthy is the underlying structural transformation: the economy has steadily accelerated its shift towards new and superior drivers of growth, with emerging sectors contributing over 40% to the economic expansion. The first half saw a 4.7% GDP growth, propelled by rapidly growing new economic forces.
Examining the stable foundation first, by sector, the value added of the primary, secondary, and tertiary industries grew by 3.7%, 3.9%, and 5.2% year-on-year respectively. Summer grain output saw a bumper harvest, reaching 150.75 million tons, a 0.7% increase over the previous year. Industrial production maintained rapid growth, with value added of industrial enterprises above designated size rising 5.4% year-on-year. Notably, the value added of equipment manufacturing and high-tech manufacturing grew by 9.3% and 13.3% respectively, both outpacing the overall industrial growth rate.
Turning to the new engines of growth, by product, output of 3D printing equipment, lithium-ion batteries, and industrial robots showed particularly rapid growth. The service sector grew steadily, with its value added increasing 5.2% year-on-year, and modern service industries developing favorably. The consumer market continued to expand, with total retail sales of consumer goods and services growing 2.7% year-on-year, within which service retail sales grew at a faster pace of 5.3%. Nationwide fixed-asset investment reached 22.637 trillion yuan, with investment in intellectual property products and high-tech industries registering faster growth.
Mao Shengyong, Deputy Director of the National Bureau of Statistics, summarized the first-half economic performance, stating the economy withstood pressure to operate within a reasonable range, with rapid growth in production and supply, a generally stable employment situation, moderate price increases, favorable foreign trade momentum, rapid growth of new growth drivers, effective protection of people's livelihoods, and continuously demonstrated resilience.
New growth drivers, contributing over 40% to the expansion, have taken on a major role, as interpreted from four key dimensions by National Bureau of Statistics spokesperson Wang Guanhua. First, new industries provided strong support. For instance, the global demand surge for high-end computing and memory chips driven by AI technological advancements led to a 23.1% year-on-year increase in integrated circuit output by industrial enterprises above designated size, reaching 279.8 billion units—equivalent to over 1.5 billion units produced daily on average.
Second, new products experienced rapid growth. For example, clean energy development drove production of nuclear power generating sets and hydro-generating sets up by 92.0% and 51.9% respectively. Increased demand for new energy vehicles and energy storage propelled lithium-ion battery output growth of 39.3%.
Third, new demand accelerated its release. From an investment perspective, enterprises placed greater emphasis on innovation through R&D, continuously increasing investment in areas like patented software databases.
Fourth, new enterprises emerged prominently. In the first half, the value added of specialized, sophisticated "little giant" industrial enterprises above designated size grew 10.4% year-on-year. In late June, the World Economic Forum released its latest list of Lighthouse Factories, with half of the 16 new global additions coming from China. These factories represent benchmarks in global manufacturing digitalization and intelligent transformation, with China now firmly holding the top global spot in their number, highlighting the significant results of AI and digital technology empowering manufacturing transformation.
Furthermore, emerging service industries are continuously being cultivated and strengthened. New business models like online commerce, telemedicine, and digital entertainment persistently expanded, driving a 3.5% growth in transaction volume on e-commerce platforms in the first half.
Mao Shengyong noted that in recent years, the pace of transition between old and new growth drivers has accelerated, with new drivers continuously growing and strengthening, increasingly becoming the mainstay supporting China's economy.
The impressive 3.6 trillion yuan growth increment for the first half of 2026 represents the largest for the same period in nearly five years. Behind these standout figures lies the tangible growth momentum of the Chinese economy. Recently, the International Monetary Fund lowered its global economic growth forecast for this year but raised China's full-year growth expectation by 0.2 percentage points. Concurrently, while the IMF raised its global inflation forecast, China's price levels remained stable, with international institutions maintaining a positive outlook on China's economic development.
From the perspective of the balance of payments, the foundation is equally solid. Goods trade scale reached a new record high, foreign exchange reserves remained stable above $3.4 trillion, and the RMB exchange rate appreciated approximately 3% compared to the beginning of the year. Mao Shengyong stated that comprehensive macro indicators show China's overall macroeconomic situation is stable, with major indicators operating within a reasonable range, which constitutes the 'stability' mentioned.
Progressing towards the new is evident when examining China's economic momentum shift through the lenses of stability, novelty, vitality, and integration, as revealed in this half-year report.
Stability forms the solid foundation for economic development. This year's national summer grain output exceeded 300 billion kilograms, achieving another bumper harvest and solidifying the 'ballast stone' for annual food security. China's installed power generation capacity historically surpassed 4.01 billion kilowatts, firmly ranking first globally. While traditional thermal power transitions from a 'leading role' to a 'supporting role', its role as a safety net guarantee continues to be prominent. With ample food, a solid industrial base, and secure energy supplies, the economic foundation is stronger and more resilient to risks.
Novelty is the key force for improving quality and efficiency. In the first half of this year, daily AI token calls reached hundreds of trillions, leading globally. Capital is accelerating its flow towards 'new quality productive forces'—capital investment in frontier fields like AI and humanoid robots grew 118.4% year-on-year.
Vitality reflects the endogenous dynamism of market activity. Offline consumption continued to recover, with experiential and scenario-based consumption becoming new engines. In the first half, foot traffic in major commercial districts nationwide increased 5.7% year-on-year, and offline consumption payment amounts grew 2.7% year-on-year. Transportation and dining consumption driven by cultural and tourism activities saw high enthusiasm. Meanwhile, the trade-in policy precisely stimulated demand, driving related sales to exceed the 1 trillion yuan mark.
Integration signifies the broad pattern of opening up. In the first half, China's imports and exports with 31 free trade agreement partners grew 28.1%, raising their share of total foreign trade to 46.5%. Sixty-three countries enjoy zero-tariff treatment from China, and 23 pilot free trade zones are developing in synergy, reflecting the deepening of China's institutional opening-up and its integration into the global system at a higher level.
This economic half-year report, characterized by stability with progress and numerous highlights, not only confirms the strong resilience and vigorous vitality of the Chinese economy but also injects ample confidence and solid foundation for continuously promoting high-quality economic development, cultivating and strengthening new growth drivers, and stabilizing the macroeconomic landscape in the second half of the year.
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