This year marks the conclusion of the 14th Five-Year Plan. The meeting of the Political Bureau of the CPC Central Committee held on July 30 pointed out: “Since the beginning of this year, under the strong leadership of the CPC Central Committee with Comrade Xi Jinping at its core, all regions and departments have actively pursued progress while overcoming difficulties, accelerated the implementation of more proactive and effective macroeconomic policies, and achieved stable and improved economic performance with new results in high-quality development.” China’s economy has demonstrated strong vitality and resilience, laying a solid foundation for completing the annual economic and social development goals and ensuring a successful conclusion to the 14th Five-Year Plan. This theoretical edition invites experts and scholars to interpret six key terms of China’s economy in the first half of the year, analyzing the highlights of economic performance, rationally assessing development trends, and fostering consensus for united efforts.

Resilience and Stability

Despite challenges, the economy has maintained steady progress.

Since the beginning of this year, under the strong leadership of the CPC Central Committee, China’s economy has advanced under pressure, achieving a 5.3% year-on-year GDP growth in the first half of the year, maintaining a leading position among major economies.

Recently, major international economic institutions have updated their global growth forecasts. The United Nations’ mid-year update in May projected global economic growth to slow to 2.4% in 2025, while the World Bank’s June report adjusted its forecast to 2.3%. In comparison, China’s 5.3% growth in the first half of the year highlights its strong vitality and resilience, prompting the IMF to significantly raise its growth forecast for China in late July.

Amid a complex and volatile international environment, China has implemented proactive fiscal and monetary policies, along with targeted measures to stabilize growth and adjust structures. These policies have not only expanded demand but also fostered new growth drivers, supporting high-quality development.

For example, policies like consumer goods trade-ins boosted retail sales by 5.0%, while infrastructure investment grew by 4.6%. High-tech exports surged by over 20%, reflecting the impact of innovation-driven strategies. R&D spending reached nearly 2.7% of GDP, approaching OECD levels, and digital transformation in manufacturing accelerated, with over 80% of light industrial enterprises adopting digital tools.

Looking ahead, while risks remain, China is well-positioned to consolidate its recovery through coordinated policies and structural reforms.

Innovation-Driven Growth

Technological advancements are fueling the development of new productive forces.

Innovation is central to fostering new productive forces. Against the backdrop of global changes, breakthroughs in science and technology are essential for overcoming development bottlenecks and achieving high-quality growth. This year, China’s economy has shown remarkable dynamism, with structural and kinetic transformations becoming key highlights.

For instance, advanced manufacturing grew by 10.2%, while high-tech manufacturing expanded by 9.5%. Emerging products like 3D printing devices, new energy vehicles, and industrial robots saw production increases of 43.1%, 36.2%, and 35.6%, respectively. The service sector also improved, with IT services growing by 11.1%.

These achievements stem from the innovation-driven development strategy, which combines market forces with government support. The 14th Five-Year Plan emphasizes technological innovation, and recent Party Congress decisions have further outlined mechanisms for comprehensive innovation. China’s global innovation ranking rose to 11th in 2024, with breakthroughs in high-performance equipment, robotics, and smart manufacturing.

Moving forward, China will continue to strengthen innovation, deepen industry-academia collaboration, and reform the scientific research system to accelerate the growth of new productive forces.

Domestic and International Synergy

A robust domestic market and resilient foreign trade underpin economic stability.

Despite global uncertainties, China’s economy has demonstrated resilience, supported by its vast domestic market and adaptable trade sector. The domestic market’s depth and gradient provide a buffer against external shocks, while consumption upgrades in urban and rural areas drive demand.

Industrial resilience is another cornerstone. China’s comprehensive manufacturing system has withstood global supply chain adjustments, with sectors like transport equipment growing by 16.6%. Meanwhile, foreign trade has remained stable, with exports of high-tech and green products expanding significantly. Trade with Belt and Road partners accounted for 51.8%