China’s ‘Six Networks’ Build-Out Gains Pace, Multi-Network Coordination Bolsters Investment to Expand Domestic

At a meeting on July 30, the Political Bureau of the Communist Party of China Central Committee, while arranging economic work for the second half of the year, stressed the need to effectively expand domestic demand, with solid progress in the planning and construction of the 'Six Networks' as a key driver to stabilize investment and expand domestic demand. The 'Six Networks' refer to the water network, electricity grid, computing power network, new-type communications network, urban underground pipeline network and logistics network, a concept first unveiled during the 'Two Sessions' in March 2026. At that time, NDRC Chairman Zheng Shanjie said that China would invest over RMB7 trillion in the 'Six Networks' and key areas in 2026.

On July 31, the NDRC held a press conference. Jiang Yi, director of the NDRC’s Policy Research Office, said that construction of the 'Six Networks' is accelerating and policy dividends are being continuously released. The NDRC has strengthened overall planning and formulated tailored special plans or implementation schemes for each network to rapidly generate physical workloads. A large number of projects have begun construction; most of the major individual projects planned to start within the year have already done so. Key projects are being pushed forward, such as the Yangtze-to-Han River water diversion project on the middle route of the South-to-North Water Diversion – a major artery of the national water network – and the Aba 1,000 kV substation in Sichuan on the energy backbone. A batch of projects, including the core node of Zhengzhou National Supercomputing Internet, have been completed and put into operation.

Jiang Yi noted that the 'Six Networks' are not isolated, independently operating systems, but an organically integrated whole that are deeply coupled and mutually empowering. Going forward, the NDRC will emphasize multi-network coordination, software-hardware synergy and scenario-based synergy, and step up efforts to flesh out and implement concrete plans, focusing on 'three priorities': first, integrated planning and multi-network coordinated advancement, adhering to a nationwide chessboard approach and scientific planning; second, achieving efficient utilization and solving practical problems with clear and effective investment orientation; third, removing obstacles and bottlenecks and improving governance, strengthening 'soft infrastructure' such as rules and mechanisms. In terms of specific investment, during the 15th Five-Year Plan period, new-type power grid investment is planned to exceed RMB5 trillion, and underground pipeline investment is planned at around RMB5 trillion. Building the logistics network will help further reduce the ratio of total social logistics costs to GDP during the period. In the first half, water network construction attracted over RMB10.8 billion in private capital, up 85.8% year on year. The computing power network will generate an additional RMB4 trillion in direct investment during the 15th Five-Year Plan period, creating space for private investment.

Zhou Hongwei, deputy director of the NDRC’s Department of National Economy and Comprehensive Affairs, disclosed that the NDRC, together with relevant departments, is currently studying and formulating an implementation plan for the strategy of expanding domestic demand (2026–2030). Next, greater efforts will be made to effectively expand domestic demand: on one hand, by combining improving people’s livelihoods with promoting consumption, enhancing consumption capacity, tapping the potential of service consumption, and boosting smart product consumption; on the other hand, by combining investment in physical assets with investment in people, accelerating the implementation of policies to expand effective investment, promoting the implementation of 109 major projects outlined in the 15th Five-Year Plan Outline, speeding up the allocation and use of RMB800 billion in new-type policy financial instruments, accelerating the issuance and use of special bonds, raising the share of government investment in projects related to people’s wellbeing, and continuously stimulating the vitality of private investment.

Investment data for the first half of 2026 shows that investment in equipment and instruments grew 8.1% year on year, accounting for 18.2% of total investment; investment in intellectual property products rose 9.4% to make up 13.8% of the total; and high-tech industry investment increased by 4.6%. Private fixed-asset investment fell 8.5% year on year in the first half, but the structure diverged with private capital accelerating its shift into the digital economy, green energy, and high-end equipment. As of April, more than 13,000 projects had been recommended to private capital nationwide, with total investment exceeding RMB11 trillion. Infrastructure investment declined 2.4% year on year in the first half, a sharp slowdown from 8.9% growth in the first quarter, mainly due to the pace of fund disbursement. Issuance of new special bonds reached about RMB2.07 trillion in the first half, equivalent to 47% of the annual quota of RMB4.4 trillion; issuance accelerated in June with over RMB570 billion sold, a monthly high since 2026.

The July 30 Politburo meeting stressed that macro policies should be more forceful and effective, accelerating fiscal spending and the use of bond funds, and vigorously advancing the 'two priorities' (the implementation of major national strategies and capacity building in key security areas) and the 'two renewals' (large-scale equipment upgrades and replacement of consumer goods with new ones). In the first half, two batches of funds totaling RMB606.5 billion were allocated for the 'two priorities' construction, representing 76% of the full-year RMB800 billion, covering areas such as artificial intelligence, urban underground pipelines, transport infrastructure in the Yangtze River Economic Belt, high-standard farmland, higher education upgrading, and the 'Three-North' shelterbelt program. For large-scale equipment renewal, the first two batches allocated a combined RMB185.1 billion to support more than 11,000 renewal and upgrade projects, leveraging total social investment of RMB840 billion.