During a press conference held by the State Council Information Office on the 17th, Fu Linghui, spokesperson for the National Bureau of Statistics and Director of the Department of Comprehensive Statistics for the National Economy, reported that from January to July, production and supply grew steadily, employment and prices remained generally stable, foreign trade resilience continued to stand out, and new growth drivers expanded. The national economy operated within a stable range, maintaining a development trajectory characterized by upgraded momentum and improved structure.
Despite a complex and volatile external environment and numerous challenges in domestic economic operations this year, China has steadfastly adhered to the direction of high-quality development, leveraging innovation to forge new drivers and advantages. This trend of new momentum and structural optimization has persisted, with July effectively continuing this trajectory. Fu noted that the country is in a phase of accelerated transition between old and new growth drivers, and the accumulating strength of new momentum is making a notable contribution to economic growth.
Strong "New" Momentum
This year, the contribution of new industries and new momentum to economic growth has continued to rise, increasingly serving as a critical pillar for the stable performance of the economy amid a complex environment. Meng Xia, an associate professor at the School of Economics and Management of China University of Geosciences (Wuhan), stated that based on the released data, new quality productive forces are being cultivated and expanded at a faster pace. Digital, intelligent, and green technologies are increasingly integrated into industrial development, with new industries and products such as electronic information, intelligent equipment, and new energy vehicles maintaining rapid growth.
Data shows that in the first seven months of this year, new momentum contributed 50.9% to the growth of industrial output above designated size, an increase of 3 percentage points compared to the first half of the year. In July, the equipment manufacturing and high-tech manufacturing sectors showed positive development trends, with growth rates accelerating by 1.3 and 2.8 percentage points, respectively, from the previous month.
The growth in equipment manufacturing, which epitomizes a nation's industrial strength, and high-tech manufacturing, which involves high R&D investment and added value, indicates that China's manufacturing sector is transitioning toward the mid-to-high end of the industrial and value chains. Wang Guanhua, spokesperson for the National Bureau of Statistics and Deputy Director of the Department of Comprehensive Statistics for the National Economy, described this as an upgrade in quality that deserves more attention than mere quantitative growth.
In the services sector, the integration of cultural, tourism, sports, and commercial formats continues to enrich, and the deep integration of advanced manufacturing with modern services is effectively promoting economic transformation and upgrading. In the first seven months, information transmission, software and information technology services, as well as leasing and business services, together contributed over 40% to the growth of the services production index.
High "Intelligence" Quotient
Artificial intelligence has become an accelerator for the transition between old and new growth drivers. Since the beginning of the year, AI has rapidly empowered various industries, upgrading traditional sectors while continuously spawning new industries and business formats, pressing the fast-forward button on the transformation of growth drivers.
On the production front, in July, the value added of AI-related electronic components and equipment manufacturing, as well as intelligent equipment manufacturing, grew by 24.7% and 15.1%, respectively. On the consumption side, retail sales of wearable smart devices above designated size surged by over 100% in the first seven months. On the investment front, investment in information services and electronic and communication equipment manufacturing increased by 19.2% and 7.1%, respectively, during the January-to-July period.
Fu Linghui indicated that with the deepening integration of technological and industrial innovation, new forms of the intelligent economy are continuously emerging, and the supporting role of new momentum growth for economic development will continue to strengthen.
Abundant "Green" Content
New green momentum is being cultivated at an accelerated pace. Wang Guanhua noted that China is fostering new industries and expanding new markets amid its green transition, continuously converting ecological advantages into development strengths. On the production side, a range of new industries and products aligned with green and low-carbon trends are growing rapidly.
In July, the value added of the bio-based materials manufacturing industry grew by 20.6% year-on-year. The increased demand for new energy vehicles and new-type energy storage drove a 58.8% rise in lithium-ion battery production, while output of hydroelectric generating sets and water pollution prevention equipment increased by 79.4% and 18.6%, respectively, effectively supporting domestic green transformation and ecological environment governance needs.
Data reveals that in the first seven months, China supported higher-quality industrial growth with lower energy consumption, as energy consumption per unit of value added in industrial enterprises above designated size fell by 3.5% year-on-year. On the demand side, green consumption and green trade have become widespread trends. The retail penetration rate of new energy passenger vehicles has exceeded 60% for four consecutive months, reaching 65.1% in July, meaning roughly two out of every three passenger cars sold were new energy vehicles.
New energy vehicles, energy-efficient home appliances, and smart home products are increasingly favored by consumers, Wang Guanhua added. Currently, China's economic operations are undergoing many positive and profound changes, with the development model shifting from traditional factor-driven growth to innovation-driven growth. However, industrial transformation and upgrading, as well as the transition of growth drivers, is not a synchronized process.
Jiang Tao, a professor at the Economics and Economic Management Teaching and Research Department of the Hubei Provincial Party School, emphasized that China's institutional advantages, super-large market advantages, complete industrial system advantages, and abundant talent pool advantages determine that the fundamentals of the economy's long-term improvement remain unchanged. As long as the country continues to deepen reforms, advance technological innovation, prevent and defuse risks, and promote a smooth transition between old and new growth drivers, it will be able to continuously unleash the potential of the super-large market and industrial innovation.