Resilience Amid Uncertainty
In late July, leaders of the Communist Party of China (CPC) approved a new roadmap to kick off research on the 15th Five-Year Plan (2026–2030), underlining a long-term vision for sustainable growth. Despite global headwinds, the Chinese mainland’s economy remains on solid footing.
Strong GDP and Industrial Momentum
Gross domestic product expanded by 5.3% year-on-year in the first half of 2025, outpacing last year’s pace and highlighting steady improvement across key sectors. Industrial output showed consistent gains, while high-tech industries continue to power innovation-led expansion.
Export Performance Exceeds Expectations
Exports, measured in renminbi, surged 7.2% year-on-year in H1, driven by front-loaded shipments, re-exports and expanding trade ties. Double-digit growth in shipments to Africa, India, the ASEAN members and Central Asia offset softer demand from the United States, reflecting a diversified trade strategy. With U.S. tariffs on other economies set to take effect on August 1, China's relative disadvantage may narrow—potentially fueling further export gains in the second half.
Consumption on the Rise
Trade-in incentives and supportive policies are fueling consumer spending. Total retail sales of consumer goods climbed 5.0% in H1, up from 4.6% in Q1 and beating last year’s full-year gain. Nearly 90% of that growth came from retail goods, where sales rose around 5%. The central government allocated 162 billion RMB to bolster local trade-in programs in the first half, with another 138 billion planned for H2, underpinning consumption ahead.
Reference(s):
cgtn.com
