China's economy started its 15th Five-Year Plan (2026-2030) period on a strong footing, posting a 4.7% year-on-year GDP growth in the first half of 2026. The National Bureau of Statistics (NBS) reported the economy reached 69.6 trillion yuan (approximately 10.25 trillion U.S. dollars) during this period, reflecting resilience amid global uncertainties.

Officials highlighted that this performance aligns with the government's annual growth target of around 4.5 to 5 percent and places China among the fastest-growing major economies worldwide. Wang Guanhua of the NBS noted that these achievements provide a solid foundation for meeting economic and social development goals for the year and beyond.

Key Economic Indicators

  • Urban unemployment rate decreased to 5.0% in June from 5.1% in May.
  • Per capita disposable income rose 5.2% year on year in H1 2026.
  • Value-added industrial output grew 5.4% year on year in the first six months.
  • Total retail sales of goods and services increased by 2.7% year on year.

Yang Te from the National Development and Reform Commission (NDRC) attributed the robust economic performance to resilient industrial and supply chains, alongside strengthened energy security measures that stabilized prices and safeguarded operations despite global disruptions.

Emergence of New Growth Drivers

The ongoing economic transition is marked by a shift from traditional sectors to new growth drivers such as high-end manufacturing, the digital economy, and modern services. These sectors contributed over 40% of economic growth in the first half of 2026.

Strategic emerging industries have shown remarkable progress. For instance, China's integrated circuit production reached 279.8 billion units in six months, averaging more than 1.5 billion chips daily. Huang Hanquan, head of the Chinese Academy of Macroeconomic Research, emphasized China's leadership in AI innovation, with AI-related industries expected to grow by over 30% this year, fueling further economic momentum.

Wang Guanhua underscored that this rapid development stems from sustained efforts in advancing core technologies, integrating technological and industrial innovation, and nurturing innovative enterprises.

Looking Ahead

The 15th Five-Year Plan outlines priorities such as modernizing the industrial system and developing new quality productive forces. As new growth drivers gain traction, they will play an increasingly pivotal role in supporting China's economic stability amid a complex global environment.