China’s Economy Expands 4.7 Percent in First Half, Powered by New Growth Drivers

Dragon Media News Desk

China’s economy expanded by 4.7 percent in the first half of 2026 despite growing uncertainties in the external environment. Chinese officials said the rising contribution of high-end manufacturing, the digital economy and modern services had given the world’s second-largest economy a strong start to a new five-year development period.

According to China’s National Bureau of Statistics, the country’s gross domestic product reached 69.57 trillion yuan, equivalent to approximately $10.25 trillion, between January and June. The economy grew by 5 percent in the first quarter and 4.3 percent in the second quarter.

Speaking during the “China Economic Roundtable,” an all-media programme hosted by Xinhua News Agency, National Bureau of Statistics official Wang Guanhua said the progress achieved under challenging conditions had laid a solid foundation for meeting the country’s annual economic and social development targets.

He said the performance had also provided a strong beginning for the 15th Five-Year Plan period covering 2026 to 2030.

Yang Te, an official with the National Development and Reform Commission, said the first-half growth rate was consistent with China’s annual target of approximately 4.5 to 5 percent.

The 4.7 percent expansion generated around 3.6 trillion yuan in additional economic output during the six-month period, he said.

According to the National Bureau of Statistics, the surveyed urban unemployment rate fell from 5.1 percent in May to 5 percent in June. Per capita disposable income increased by 5.2 percent year on year to 22,981 yuan in the first half.

During the same period, value-added industrial output among major enterprises rose by 5.4 percent. Equipment manufacturing expanded by 9.3 percent, while high-technology manufacturing grew by 13.3 percent. Total retail sales of goods and services increased by 2.7 percent.

Chinese officials identified the resilience of the country’s industrial and supply chains, together with strong energy security, as major foundations of economic stability.

Yang said China had maintained industrial operations and protected people’s daily lives by strengthening energy supply guarantees and stabilising prices at a time of disruptions in global energy markets.

New growth drivers represented by high-end manufacturing, the digital economy and modern services contributed more than 40 percent of China’s economic growth during the first half of the year.

The country produced 279.8 billion integrated circuits during the period, equivalent to an average daily output of more than 1.5 billion chips.

Huang Hanquan, head of the Chinese Academy of Macroeconomic Research under the National Development and Reform Commission, said China had joined the world’s leading group in artificial intelligence innovation.

He predicted that AI-related industries would expand by more than 30 percent in 2026, providing fresh momentum for economic growth.

China’s 15th Five-Year Plan outline, unveiled in March, prioritises the modernisation of the industrial system, closer integration of technological and industrial innovation, and the development of new quality productive forces.

Chinese officials said the rapid expansion of emerging industries was not a temporary development but the result of sustained investment in core technologies, innovative enterprises and long-term industrial transformation.

They said the continued rise of new growth drivers was becoming an increasingly important foundation for maintaining the stability of China’s economy amid a complex global environment.