Chongqing - Chongqing’s economy gained ground in the first half of 2026, powered by industrial exports, motorcycle manufacturing, high-tech investment and rising international freight. Yet weak demand, fierce competition and shrinking corporate profits continued to weigh on growth.

The western Chinese municipality recorded gross domestic product of 1.67 trillion yuan (about 246.85 billion U.S. dollars) in the first six months of the year, up 4.2% from the same period in 2025, according to data released July 21 by the Chongqing Municipal Bureau of Statistics.

Chongqing's GDP reached 1.67 trillion yuan in the first half of 2026. (Graphic/Zheng Ran)

Analysts said Chongqing’s economy remained stable and improved, supported by manufacturing, modern services, advanced-industry investment and new consumption, though GDP, industrial output and fixed-asset investment fell short of the city’s expectations.

Chongqing has set a full-year target of economic growth above 5%, along with 6% growth in the added value of industrial companies above a designated size. In China's statistical system, that category generally covers industrial enterprises with annual core business revenue of at least 20 million yuan.

Industrial exports were among the main areas of growth. In the first half, export delivery value at Chongqing's major industrial enterprises reached 237.7 billion yuan, up 11.8% year on year. The growth rate was 3.3 percentage points higher than in the first quarter.

In the first half of 2026, export delivery value at Chongqing's major industrial enterprises reached 237.7 billion yuan. (Graphic/Zheng Ran)

Computer, communications and other electronic equipment accounted for 76.4% of the city's total industrial export delivery value, with the sector recording growth of 11.2%.

Automobile exports also recovered. Export delivery value in the auto manufacturing sector increased 24.7%, an improvement of 40.7 percentage points from the first quarter. Export delivery value rose 7.1% for other transport equipment, a category led by motorcycles, 8.9% for general equipment and 35% for electrical machinery.

The industrial data reflected expansion across Chongqing's manufacturing base. The city organizes priority sectors through a municipal industrial-cluster framework known as the "33618" system, covering leading industries, pillar sectors, specialized strengths and emerging fields.

Added value in intelligent connected new energy vehicles increased 5.8%, while new-generation electronics manufacturing grew 7.4%. Intelligent equipment and smart manufacturing rose 10.5%.

Smaller but faster-growing fields recorded stronger gains. Added value in artificial intelligence and robotics increased 34.9%, while power semiconductors and integrated circuits rose 24.7%. New energy and advanced energy storage grew 23.7%.

Production of lithium-ion batteries increased 63.2%, integrated circuit wafers rose 20.4%, industrial robots grew 17.8%, liquid crystal display screens increased 9.7%, and new energy vehicles rose 3.8%.

Motorcycles were one of the strongest-performing products. Chongqing produced 5.73 million complete motorcycles in the first half, up 49.7% year on year. Added value in the high-end motorcycle cluster grew 14.3%, while export delivery value in the broader transport equipment category rose 7.1%.

Chongqing produced 5.73 million motorcycles in H1 2026. (Graphic/Zheng Ran)

Chongqing's position as a manufacturing and logistics center in western China was also supported by the New International Land-Sea Trade Corridor (ILSTC), a network linking western Chinese regions with ports and overseas markets through rail, sea and road transport.

During the first half, goods transported from Chongqing through the corridor's three main services- rail-sea intermodal transport, international rail services and cross-border highway shuttles- reached 184,400 twenty-foot equivalent units, or TEUs, up 19% from a year earlier. The cargo was valued at 32.5 billion yuan, an increase of 15%.

Cargo volume via the New International Land-Sea Trade Corridor reached 184,400 TEUs in H1 2026. (Graphic/Zheng Ran)

A freight service previously known as the ASEAN Express was upgraded into the Eurasia Express, extending links from Southeast Asia toward the broader Eurasian market. The service transported 2,198 TEUs in the first half, up 75.8%, with cargo worth 1.45 billion yuan, up 7.5%.

Driven by stronger overseas demand for automobiles and laptops, Chongqing's total foreign trade reached a record 481.23 billion yuan in the first half of the year, up 31.9% year on year.

Investment was increasingly directed toward technology and manufacturing. High-tech industry investment rose 14.6%, 21.7 percentage points higher than in the first quarter, and contributed 1.1 percentage points to the city's overall investment growth.

Automobile industry investment increased 20.1%, contributing 0.7 percentage points to total investment growth. Spending on equipment and production tools rose 6%, reflecting continued investment in equipment renewal and manufacturing upgrades.

Services and tourism also expanded. Revenue among major enterprises in information transmission, leasing and business services, and scientific research increased 12%. Together, those three sectors accounted for 57.4% of revenue among major service companies.

From January through May, revenue increased 41.6% for travel agencies and related services, 33% for leisure and sightseeing activities, and 31.8% for scenic-area management.

Consumer spending grew at a more moderate pace. Chongqing recorded 849.1 billion yuan in total retail sales of consumer goods during the first half, up 2.3%. The growth rate was 0.5 percentage points higher than in the first quarter.

Total retail sales of consumer goods in Chongqing reached 849.1 billion yuan in H1 2026. (Graphic/Zheng Ran)

Online retail sales by major wholesale and retail businesses increased 6.7%. Retail sales of sports and entertainment products rose 22.5%, while sales of cameras increased 22.7%. Smartphone sales and sales of high-efficiency household appliances each rose 14%.

New energy vehicles accounted for 47.1% of automobile retail sales among major businesses, an increase of 7.3 percentage points from a year earlier.

Private companies produced added value of 1.01 trillion yuan, up 4.8%, contributing 2.9 percentage points to the city's overall economic growth. State-owned economic activity grew 2.8%, while businesses funded by foreign investors and investors from Hong Kong, Macao and Taiwan expanded 5.4%.

Industry and connectivity bolster Chongqing’s outlook

Sun Lingyu, chief expert at the Chongqing Economic and Social Development Institute, said the city continued to benefit from national strategies, its industrial base, transport links and the concentration of production resources.

"With macroeconomic policies taking effect, production factors continuing to gather and market expectations strengthening, Chongqing has the confidence and capacity to respond to various risks and challenges and maintain stable economic progress," Sun said.

Sun recommended that the city increase project investment, including industrial projects, urban renewal and programs and "investment in people," meaning spending intended to improve human capital and public services.

He also called for measures to support automobile sales channels, promotions and overseas expansion, while using global demand for AI computing capacity to accelerate adjustments in servers, integrated circuits and related electronics.

For private businesses, Sun recommended stronger regular communication between government departments and companies, further removal of hidden market-access barriers and wider access for private capital to industrial, infrastructure and public-service projects.

Chongqing officials said the next stage would focus on integrating scientific and industrial innovation. The city has introduced an official program known as the "203060" breakthrough framework, intended to concentrate resources on priority technology projects.