In the first two months of 2026, China's economic report card was released, showing a strong start to the year. Three key signals reveal the major trends for the year ahead. First, production has accelerated significantly, with industrial activity gaining robust momentum. Value-added output from large-scale industrial enterprises increased by 6.3% year-on-year, up 1.1 percentage points from the end of last year. More importantly, structural transformation is speeding up: high-tech manufacturing surged by 13.1%, while equipment manufacturing rose by 9.3%. Output of advanced products such as industrial robots, lithium-ion batteries, and 3D printing equipment grew substantially. This is not extensive, low-quality growth—it is new quality productive forces taking the lead.
Next, looking at consumption and investment: total retail sales of consumer goods exceeded 8.6 trillion yuan, with growth picking up. Service consumption was even stronger, rising 5.6% year-on-year. The "longest Spring Festival holiday in history," combined with the ongoing effects of trade-in policies, kept consumer spending booming. On the investment front, growth also turned positive from negative, with continued increases in high-tech industries and emerging sectors. The decline in private investment narrowed. In short, market confidence is recovering, and people are more willing to spend.
The most encouraging performance came from foreign trade. In the first two months, goods imports and exports grew by 18.3%, with exports rising 19.2%. Against a backdrop of global volatility, this growth rate is particularly impressive. What does it signify? "Made in China" products are gaining popularity worldwide.
The data does not lie. Following this solid start, even stronger fiscal support will be deployed to stabilize growth. General public budget expenditure is set to exceed 30 trillion yuan for the first time, supplemented by 1.3 trillion yuan in ultra-long-term special government bonds and 4.4 trillion yuan in local government special bonds, among other measures. There is strong confidence that China's economy this year will be full of vitality and achieve resounding success.
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