New Growth Drivers Contribute Over 40% to China's H1 2026 Growth; High-Tech Manufacturing Output Up 13.3%

Statistical releases for the first half of the year have been published one after another. Preliminary calculations show that new growth drivers, represented by high-end manufacturing, the digital and intelligent economy, and modern services, contributed more than 40% of economic growth in the first half of the year. Value added of industrial enterprises above a designated size rose 5.4% year on year, while that of high-tech manufacturing grew 13.3%. Among these, manufacturing of aircraft, spacecraft and related equipment increased 16.3%, and manufacturing of electronic and communications equipment increased 17%; output of integrated circuits and intelligent vehicle equipment both rose by more than 30%.

In the first six months, industrial enterprises above designated size achieved total profits of RMB 3,947.99 billion, up 18.7% year on year. Profits of non-ferrous metal smelting and rolling increased 99.4%, while profits of computer, communication and other electronic equipment manufacturing rose 96.9%. The dividend from industrial upgrading is being transmitted from the revenue side to the profit side.

In the first half of the year, output of 3D printing equipment increased 48.5%, with applications accelerating in aerospace and medical care; lithium battery output rose 39.3%, supported by rising global penetration of new-energy vehicles and booming energy-storage markets; industrial robot output grew 28.0%, following manufacturing demand for precision and efficiency. The whole chain, from upstream raw materials to downstream applications, has been connected, enhancing the resilience, efficiency and competitiveness of China's economy.

The Central Economic Work Conference held at the end of 2025 listed persisting with innovation-driven development and accelerating the cultivation and expansion of new growth drivers as a key task for 2026. Traditional industries remain large in scale, and the transition between old and new growth drivers is still at a critical stage. Shortcomings persist in some core components, and making industrial chains self-sufficient and controllable requires further effort. Many traditional enterprises have been slow to embrace digital transformation, and integration between old and new industries needs improvement. Sci-tech enterprises face heavy long-term R&D investment pressure, and the financial support and talent training systems adapted to hard technology need to be continuously improved.