By Liu Zhiqiang, People’s Daily
Despite a complex international landscape and mounting challenges, China maintained steady economic growth in the first half of 2025, said Sheng Laiyun, deputy head of the Chinese National Bureau of Statistics at a press conference held by China’s State Council Information Office on July 15.
“This is a hard-won achievement, especially given the sharp changes in the international environment and increased external pressures since the second quarter,” Shen added. She explained that the performance highlights China’s economic resilience and should keep China on track to achieve its full-year growth target.
According to preliminary calculations, China’s GDP reached around 66.05 trillion yuan (about $9.19 trillion) in the first six months of the year, marking a year-on-year increase of 5.3 percent, 0.3 percentage points higher than the growth rate for both the same period last year and for the entirety of 2024.
The job market remained generally stable, consumer prices were basically flat, and the country has kept a basic balance of international payment. In goods trade, total imports and exports hit a record high for the same period, and foreign exchange reserves remained above $3.2 trillion.
Regions nationwide have intensified efforts to integrate technological and industrial innovation. Emerging sectors, new business models, and advanced technologies maintained rapid growth. Investment in innovation remains vigorous, with research and development expenditure approaching 2.7 percent of GDP, higher than the EU average and nearing the OECD average.
As of June this year, the number of valid Chinese domestic invention patents had reached 5.01 million, an increase of 13.2 percent year on year, according to Shen, while ownership of high-value invention patents per 10,000 people had reached 15.3.
Emerging sectors saw robust growth, with value-added industrial output in high-tech manufacturing rising by 9.5 percent in the first half of the year. In the January-May period, revenue from strategic emerging service industries grew by nearly 10 percent. The application of innovation outcomes and industrial integration propelled the development of high-tech sectors.
China’s digital economy also expanded at a fast pace. Artificial intelligence, digital industrialization and industrial digitization have advanced rapidly. The value-added output of core digital economy industries reached about 10 percent of the total GDP, a competitive level even among developed economies.
China’s green transition is also accelerating. In the first half of the year, production of new energy vehicles and lithium-ion batteries for automobiles increased by 36.2 percent and 53.3 percent, respectively. Green industries sustained strong momentum as nationwide efforts continued to upgrade traditional sectors.
“In response to external challenges, China has made boosting domestic demand a key priority, implementing a range of measures to stimulate consumption, boost production, and ensure smooth flows of goods and capital,” Shen said.
These efforts are yielding positive effects: freight turnover rose 5.1 percent and passenger turnover 4.9 percent year on year. The M2, a broad measure of money supply that covers cash in circulation and all deposits, increased 8.3 percent year on year at the end of June.
Stimulated by policies promoting consumption and domestic demand, China’s consumer market has become more active. In the first half of 2025, domestic demand contributed 68.8 percent to GDP growth during the period, with final consumption expenditure accounting for 52 percent, making it the main driver of growth.
Inbound tourism and retail have both picked up sharply, boosted by the country’s expanded visa-free policies. “China Travel” and “shopping in China” are becoming increasingly popular among international travelers, further invigorating China’s domestic consumption.
Addressing the outlook for the second half of the year, Sheng acknowledged lingering external uncertainties and domestic structural adjustments but affirmed solid underpinnings for sustained economic growth.
China is experiencing a crucial phase of consumption upgrading, with per capita GDP remaining above $13,000 for two consecutive years. Sheng highlighted substantial development potential in tourism, healthcare, and senior care services, underpinned by the vast domestic market with a population of over 1.4 billion.
The services sector is increasingly supporting growth. In the first half of 2025, the value added by the services sector accounted for 59.1 percent of GDP, contributing more than 60 percent to total H1 growth. The sector’s business activity index has remained above 50 percent for consecutive months this year, indicating stable expansion momentum.
Export indicators also show positive trends. China has pursued a diversified trade strategy, reducing dependence on any single market to below 10 percent.
“Proactive macroeconomic policies rolled out since the start of the year have stabilized the economy and built momentum,” Sheng concluded. “With additional policy measures forthcoming in the second half, we’re confident that the economy will maintain its steady upward trajectory.”
