Chongqing - The Political Bureau of the Communist Party of China Central Committee said on July 30 that new growth drivers gained momentum and the economic structure improved in the first half of 2026. It also called for stronger countercyclical support and a faster shift to new growth drivers.
Visitors fill the exhibition hall during the 2026 World Artificial Intelligence Conference. (Photo/Zheng Ran)
Six networks could drive China’s next investment wave
China’s GDP grew 4.7% in the first half of 2026. Value-added industrial output at major enterprises rose 5.4%, while goods trade increased 21.2% in U.S. dollar terms.
The economy also continued to evolve. Manufacturing contributed 26.2% of GDP, and new energy vehicles accounted for more than 60% of retail auto sales for three straight months. Advanced manufacturing, the digital economy and modern services generated over 40% of economic growth.
Zhang Linshan, a researcher at the Chinese Academy of Macroeconomic Research under the National Development and Reform Commission, said China still had sufficient policy space, while new growth drivers were expanding and market demand continued to grow and improve in quality.
Ye Fan, chief economist at Southwest Securities, said in a July 31 analysis that the July meeting’s call to maximize existing policies and prepare practical new measures signaled continued macroeconomic support in the second half.
Ye said a more proactive fiscal policy and moderately loose monetary policy remained unchanged in direction. The current focus, she said, was on ensuring measures already introduced produced results, while additional policies could be deployed if economic pressures increased.
"Macroeconomic policies need to be precise and effective," said Dong Yu, executive deputy dean of the China Institute for Development Planning at Tsinghua University. Coordination between fiscal and monetary policies, he said, could help strengthen market expectations and support continued economic upgrading.
The July meeting also called for progress on the planning and construction of the country's "Six Networks," comprising the national water network, new-type power grid, computing power network, next-generation communication network, urban underground pipeline network and logistics network. National Development and Reform Commission said that construction of the six networks and related priority areas could generate seven trillion yuan in investment this year.
An aerial drone photo taken on April 15, 2026, shows the Yubei converter station of the Xinjiang-to-Chongqing electricity transmission project in Chongqing. (Photo/Xinhua)
Ye said such investment could support domestic demand in the short term. Over a longer period, deeper integration of computing and communications networks could support emerging productive capacity, while infrastructure for power coordination and emergency communications could strengthen critical safeguards.
Chongqing industrial output grows amid mixed automaker results
Factory output data show how the shift is unfolding in Chongqing, one of western China’s largest industrial centers.
An automated production line operates at a Chongqing Tsingshan Industrial facility. (Photo/Zheng Ran)
Chongqing grew 4.2% in the first half, with emerging industries, services and trade outpacing some traditional sectors.
Within Chongqing’s “33618” framework for priority manufacturing sectors, intelligent equipment and smart manufacturing grew 10.5%, next generation electronics rose 7.4%, and intelligent connected new energy vehicles increased 5.8%.
Several emerging industries expanded considerably faster.
Lithium-ion battery output jumped 63.2%, integrated circuit wafer production rose 20.4%, and LCD panel output increased 9.7%. Chongqing produced 5.73 million motorcycles, up 49.7%.
Output from the municipality's AI and robotics industries increased 34.9%, while power semiconductors and integrated circuits rose 24.7%. New energy and advanced energy storage increased 23.7%.
But Chongqing’s traditional industries faced growing pressure. Secondary sector output rose just 2.2%, while major automaker Seres swung to a loss and Changan Automobile reported a sharp profit decline. New energy vehicle production grew 3.8%, down from 25% in the first half of 2025.
A tax refund counter at Starlight 68 shopping mall in Chongqing's Guanyinqiao commercial district, one of the city's centralized service points for the "refund-upon-purchase" departure tax refund program. (Photo/Zheng Ran)
Services and trade reshape Chongqing’s economy
Chongqing’s new five-year service sector plan translates national priorities, including advanced manufacturing, domestic demand and opening up, into local action. Services grew 5.3% to 1.03 trillion yuan in the first half, contributing 62% of the municipality’s GDP.
From January through May, revenue in leasing and business services increased 22.7%, while culture, sports and entertainment grew 22.1%. Revenue from travel agencies and related services climbed 41.6%, and leisure and sightseeing activities rose 33%. The number of large commercial performances increased 50% year on year.
Ye said the national policy focus on domestic demand was increasingly shifting toward higher-quality services. China's service retail sales grew 5.3% in the first half, 4.2 percentage points faster than retail sales of goods.
He added future measures could support immersive consumption, spending linked to sporting events and knowledge based services.
Chongqing is moving in the same direction. Its Modern Service Industry Development Plan for 2026 to 2030, issued on August 3, aims to raise annual service sector value added above 2.5 trillion yuan by 2030, with average yearly growth of about 5.5%.
To reach that goal, the plan introduces a “9611” system covering nine producer service sectors such as digital information, finance and modern logistics; six consumer service sectors including elderly care, childcare, tourism, sports, catering and accommodation; and 11 signature initiatives.
External trade provided another source of growth.
A China-Europe freight train departs from Chongqing, southwest China. (Photo/China Railway)
Chongqing's imports and exports reached 481.23 billion yuan in the first half, up 31.9%, a growth rate 15 percentage points above the national average. Exports increased 34.6% to 339.29 billion yuan, while imports rose 26% to 141.94 billion yuan.
Trade with countries participating in the Belt and Road initiative increased 33.2% to 215.93 billion yuan. Trade with Latin America rose 37.4%, Africa 47.8% and Central Asia 49.3%.
Ye said the July 30 meeting also called for stronger mutually beneficial trade ties, expanded services trade and more balanced trade. She added that China plans to improve overseas investment management and support for companies operating abroad, while attracting and making better use of foreign investment.