China Economy Grows 4.7 Percent in First Half of 2026

The Government of China reported that the economy grew by 4.7 percent in the first half of 2026. This growth was supported by a 16.9 percent rise in imports and exports of goods and a significant shift toward technological innovation and domestic demand, although second-quarter GDP growth slowed to 4.3 percent.

High-frequency data from the State Information Center shows steady improvement in July 2026, with offline consumption payments increasing 2.2 percent year on year. Spending on household appliances and audio-visual equipment rose 8.5 percent. Researcher Xing Yuguan noted that the recovery in July became more broad-based, reflecting stronger market confidence.

Industrial upgrading is a primary economic engine, with high-tech manufacturing value-added output increasing 13.3 percent. Investment in advanced manufacturing surged by 73.1 percent, with growth concentrated in semiconductors, AI, industrial robots, and lithium-ion batteries. AI-related patent authorizations also grew by 60 percent year on year.

To sustain this transition, the government is prioritizing new quality productive forces and the development of six networks covering water, power, computing, communications, underground utilities, and logistics. Planned power grid investments are expected to exceed 5 trillion yuan during the 15th Five-Year Plan spanning 2026 to 2030.