New drivers underpin China’s economic resilience in face of pressure and challenges

Amid the weakening global economic outlook, China’s economic performance in the first half of this year is a bright spot.

Data released by the National Bureau of Statistics on Wednesday show that the country’s GDP grew by 4.7% from January to June year-on-year. The pace of growth of the world’s second-largest economy is in line with its annual target.

China’s GDP grew 5% year-on-year in the first quarter. Although growth moderated in the second quarter, the economy has remained on a stable footing, with its underlying trend toward innovation-driven and high-quality development unchanged.

The 22.1% increase in imports of goods and 13.4% increase in exports year-on-year demonstrate the vitality of the country’s foreign trade, which, in spite of the rising protectionism and trade restrictions by some economies, continues to drive growth.

A deeper look shows the improving structure of the economy. During the first six months of this year, new drivers, such as high-end manufacturing, the digital economy and the modern service industry, contributed more than 40% of the growth, a testament that the country is advancing its innovation-driven progress.

Another telling piece of evidence is the robust expansion of the service sector, which has become a major growth engine. The sector’s added value increased by 5.2% year-on-year, accounting for over 59% of GDP.

The country has intensified efforts to boost the service sector over the years to empower agriculture, manufacturing and other sectors, and create jobs. Even while the service sector is expanding, the country attaches strategic importance to manufacturing, the backbone of the economy.

Statistics show the added value generated by the manufacturing sector accounted for 26.2% of the country’s GDP, 0.4 percentage points higher than three years ago, the NBS said.

China enjoys unique strengths in its comprehensive manufacturing system, which is the foundation of the country’s supply chains, as well as its ability to seize opportunities in global markets and turn out products tailored to the needs of consumers around the world.

The manufacturing powerhouse is now aiming to further consolidate these strengths by investing more in research and development to overcome technological choke points and exploring cutting-edge technologies to upgrade its factories, making them smarter and more eco-friendly.

According to the NBS, the volume of energy consumed per unit of GDP in the first half of this year decreased 1.9% year-on-year, as the country continues to maintain competitive advantages in its new energy products.

The country’s economic performance is the product of targeted, systematic policies — carefully calibrated to sharpen the competitive edge of high-technology industries while shoring up the resilience of more established sectors.

Nevertheless, future growth continues to face complex external challenges. As Mao Shengyong, deputy head of the NBS, said at a news conference on Wednesday, the authorities should work to strengthen countercyclical and cross-cyclical regulation, further expand domestic demand, and strive to build a robust domestic market to counter the headwinds.

The 4.7% GDP growth in the first six months of 2026 was hard-won. It ought to reinforce the nation’s confidence that the economy’s intrinsic resilience will continue to help the country effectively navigate risks and challenges.

Editorial, China Daily