Politburo Meeting Sets H2 Economic Agenda: Boost Domestic Demand, Deepen Capital Market Reforms
On July 30, the Politburo set the second-half economic agenda, emphasizing stronger domestic demand and deeper capital market reforms. First-half GDP grew 4.7% to RMB 69.57 trillion, with the largest increment in five years. High-tech manufacturing expanded 13.3%, while fixed-asset investment fell 5.7% and retail sales rose only 1.3%. The meeting also called for enhancing market resilience and confidence.
On July 30, the Political Bureau of the CPC Central Committee convened a meeting to analyze the current economic situation and plan work for the second half of the year. The meeting proposed intensifying efforts to expand domestic demand and optimize supply, and called for deepening comprehensive reforms in the capital market's investment and financing, enhancing its resilience and confidence. Data from the National Bureau of Statistics released on July 15 showed that first-half gross domestic product reached RMB 69.57 trillion, up 4.7% year on year, with an increment of RMB 3.6 trillion, the largest first-half increment in five years.
The economic structure showed clear divergence in the first half. New drivers such as high-end manufacturing, the digital economy, and modern services contributed more than 40% of economic growth. The value-added of large-scale high-tech manufacturing rose 13.3% year on year, with aerospace and equipment manufacturing up 16.3% and electronics and communication equipment manufacturing up 17%. Traditional sectors were weak: national fixed-asset investment fell 5.7%, private investment declined 8.5%, infrastructure investment dropped 2.4%, and real estate development investment fell 18.0%. Total retail sales of consumer goods increased only 1.3% year on year, while per capita disposable income actually rose 4.2% and consumption expenditure actually grew 2.7%.
Foreign trade and energy sectors showed positive changes. Goods trade in the first half exceeded RMB 25 trillion for the first time, with integrated circuits becoming the largest single-month export commodity in June. Crude oil, natural gas, and electricity production all hit record highs for the same period, and overall price levels remained stable. The value-added of equipment manufacturing increased 9.3% year on year, hi-tech manufacturing grew 13.3%, and profits in the integrated circuit manufacturing industry rose nearly 26 times. The retail penetration rate of new energy vehicles exceeded 60% for three consecutive months. Artificial intelligence-related industries, such as integrated circuit manufacturing and intelligent vehicle equipment manufacturing, maintained growth of over 30%.
On the policy front, the implementation of 109 major projects under the 15th Five-Year Plan was accelerated, and the construction of the 'six networks' proceeded steadily. Special plans for urban renewal, agricultural and rural modernization, and expanding consumption were rolled out. In the first half, energy consumption per unit of GDP fell 1.9% year on year, and energy intensity continued to improve.