China's First-Half Economic Performance Signals Stronger Momentum and Higher-Quality Growth

Par Zhong Yin, People's Daily In the first half of 2026, China's GDP grew by 4.7 percent year-on-year. Summer grain output exceeded 150 million tons for the first time, while total imports and exports surpassed 25 trillion yuan ($3.69 trillion)—also a record for the period. Despite mounting external uncertainties, the Chinese economy has maintained overall stability and continued its shift toward more innovation-driven and higher-quality growth, demonstrating remarkable resilience and vitality. Global economic growth has slowed broadly this year. The International Monetary Fund (IMF) recently revised its 2026 global growth forecast down to 3.0 percent, while raising its forecast for China's full-year economic growth by 0.2 percentage points. Why has China continued to stand out in a challenging global environment? The answer can be summed up in four key words: stability, innovation, vitality, and integration. ### Stability: Providing certainty in an uncertain global economy In the first five months of this year, China exported 187 high-value-added liquid cargo vessels worth more than 64.3 billion yuan, an increase of 188.8 percent year-on-year. During the first half of the year, China's automobile exports surpassed 5 million units for the first time, with exports of electric vehicles soaring 68.7 percent. The strong global performance of Chinese-built ships and automobiles reflects the resilience and competitiveness of the broader Chinese economy. China's economic expansion in the first half of 2026 was the largest for the same period in the past five years. From the rapid growth of integrated circuit exports to the expanding digital trade network of small commodities in Yiwu, Zhejiang province, China's ability to respond quickly to shifting demand, compete in high-end industries, and expand into emerging markets is underpinned by its complete industrial system. Some economic indicators have experienced short-term fluctuations, reflecting both external challenges and domestic structural adjustments. But such fluctuations do not change the long-term trajectory of China's economic development. ### Innovation: Building new engines of growth Two recent breakthroughs illustrate this momentum. The victory of Chongqing-based motorcycle maker ZXMOTO in an international superbike championship ended the long-standing dominance of European and Japanese brands, highlighting the transformation of Chongqing's motorcycle supply chain and upgrading of China's traditional manufacturing industries. The introduction of the "Tau Law" by Huawei, advocating "time scaling" in chip design, has brought 381 chip models into mass production. This year also saw major scientific and technological breakthroughs: China's supercomputer LineShine became the world's fastest, and the Long March-10B carrier rocket achieved the world's first offshore recovery using a sea-based net system. These advancements underscore the rapid development of China's emerging industries and the growing contribution of high-end manufacturing, the digital economy, and modern services to economic growth, accounting for over 40 percent of the first-half GDP. ### Vitality: Unlocking new opportunities through a vast market As of June 20, consumer goods trade-in programs generated over 1 trillion yuan in sales, benefiting 136 million consumers. The demand of over 1.4 billion people for a better life continues to fuel China's vast consumer market. Artificial intelligence is empowering industries, while grassroots cultural events revitalize rural communities. New demand creates new supply, and vice versa, sustaining economic dynamism. China's trade agreements, such as zero-tariff treatment for African imports, demonstrate its commitment to inclusive development and mutually beneficial cooperation. ### Integration: Connecting innovation with development Chinese hard-tech companies like Unitree Robotics successfully completed domestic listings, while more technology enterprises accelerated capital market entry. Investment in physical assets and people is increasingly aligned, and innovation, industrial, capital, and talent chains are integrated. China launched the Xiangshan open-source processor system and the Ruyi native operating system, both maintained globally. The High Energy Photon Source has received over 1,700 experiment applications from research teams at home and abroad. China is evolving from a technology follower into a global source of innovation, with reforms emphasizing deeper integration across culture, commerce, tourism, sports, exhibitions, and urban-rural development. China's economy is moving toward long-term, high-quality development with a promising future.