China's H1 2026 GDP Up 4.7% to RMB 69.6 Trillion, Largest Increment in Five Years

China's economic report for the first half of 2026 was released recently. Data show that the gross domestic product (GDP) for the first half of the year reached RMB 69.6 trillion, up 4.7% year on year. 2026 marks the first year of the 15th Five-Year Plan. Amid a complex and shifting external environment and intertwined domestic challenges, China's economy continued its overall stable and improving trajectory.

Compared with the first half of 2025, GDP increased by RMB 3.6 trillion, the largest increment for the same period in five years. Mao Shengyong, deputy director of the National Bureau of Statistics, said that for a super-large economy, achieving 4.7% growth is commendable. Major macroeconomic indicators remained within a reasonable range: the average surveyed urban unemployment rate in the first half was 5.2%, unchanged from the same period in 2025 and down 0.1 percentage point from the first quarter; the consumer price index (CPI) rose 1.0% year on year, and the producer price index (PPI) rose 1.5%, both at moderate levels; goods trade hit a new high, foreign exchange reserves remained stable above USD 3.4 trillion, and the RMB appreciated about 3% against the dollar from the beginning of the year.

New growth drivers contributed 47.9% to the growth of value-added output of industrial enterprises above designated size, led by high-tech manufacturing and digital product manufacturing. In the first half, value-added output of high-tech manufacturing above designated size grew 13.3% year on year, with aerospace and equipment manufacturing and electronics and communication equipment manufacturing growing 16.3% and 17%, respectively. AI-related sectors such as integrated circuit manufacturing and smart vehicle equipment manufacturing maintained growth of over 30%. Output of integrated circuits by industrial enterprises above designated size grew 23.1%, with an average daily production exceeding 1.5 billion units.

Traditional industries achieved green transformation and quality upgrading through digital and intelligent renovation. In the first half, biomass fuel processing and bio-based material manufacturing grew 33% and 21.9%, respectively; the retail penetration rate of new energy vehicles exceeded 60% for three consecutive months. Value-added output of specialized and 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 lighthouse factories coming from China, keeping China's total number of lighthouse factories firmly in first place globally.

In investment, enterprises continued to increase investment in patents, software, and databases. In the first half, investment in intellectual property products accounted for 13.8% of fixed-asset investment, up 1.4 percentage points from the first quarter. Smart, green, and health-oriented consumption are gradually becoming new consumption trends.

All 31 provincial-level regions have released their first-half economic reports. The top ten provincial economies accounted for over 60% of the national GDP, and ten major industrial provinces supported growth with an average industrial value-added growth rate of about 7%. Anhui and Hubei led among industrial provinces in industrial output growth, with high-tech manufacturing value-added growing 44.6% and 36.8%, respectively.

A series of policy measures have been implemented proactively: the State Council executive meeting deployed efforts to accelerate the building of an efficient and smooth modern logistics system; the central bank introduced multiple policy measures, including improving the short-term interest rate adjustment mechanism; and the 2026 list of RMB 800 billion in "two major" investment projects and RMB 200 billion in equipment renewal funds have been fully allocated. Wang Guanhua, deputy director of the National Bureau of Statistics' Department of National Economic Accounting, said that the transition between old and new growth drivers is a systematic project that requires sustained effort. In the next stage, all regions and departments will adhere to the principles of seeking progress while maintaining stability and improving quality and efficiency, continue to expand domestic demand and optimize supply, focus on cultivating and strengthening new growth drivers, and promote both qualitative improvement and reasonable quantitative growth of the economy.