At a press conference held by the State Council Information Office on the 17th, Fu Linghui, spokesperson for the National Bureau of Statistics and Chief Economist, stated that from January to July, production and supply grew steadily, employment and prices remained generally stable, foreign trade resilience continued to show, and new drivers of growth expanded. The national economy operated smoothly overall, maintaining a trend of new momentum and structural optimization.
Since the start of this year, despite a complex and ever-changing external environment and numerous challenges in domestic economic operations, China has unwaveringly adhered to the direction of high-quality development, using innovation to shape new drivers and advantages. In July, this trend continued effectively. "China is in a process of accelerating the transition between old and new growth drivers, where the accumulation of new momentum makes a significant contribution to economic growth," Fu noted.
Abundant Innovation Content
This year, new industries and new growth drivers have continued to increase their contribution to economic growth, increasingly becoming the key support for the stable operation of China's economy in a complex environment. Meng Xia, Associate Professor at the School of Economics and Management of China University of Geosciences (Wuhan), stated that from the released data, new quality productive forces are accelerating in their cultivation and expansion. Digital, intelligent, and green technologies are increasingly integrated into industrial development, with new industries and products represented by electronic information, intelligent equipment, and new energy vehicles maintaining rapid growth.
Data shows that in the first seven months, new growth drivers contributed 50.9% to the growth of industrial enterprises 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 industries showed good momentum, with growth rates accelerating by 1.3 and 2.8 percentage points respectively compared to the previous month.
"Equipment manufacturing reflects a country's industrial strength, and high-tech manufacturing involves higher R&D investment and added value. The growth in these two areas indicates that China's manufacturing is transitioning towards the mid-to-high end of the industrial and value chains, representing a 'qualitative improvement' more noteworthy than 'quantitative growth'," said Wang Guanhua, spokesperson for the National Bureau of Statistics and Deputy Director of the Department of Comprehensive Statistics of the National Economy.
Looking at the services sector, integrated formats such as culture, tourism, sports, and commerce continue to enrich, while advanced manufacturing and modern services are deeply integrated, effectively promoting economic transformation and upgrading. In the first seven months, information transmission, software and information technology services, leasing and business services—these two modern service industries—contributed over 40% to the growth of the service industry production index.
High Intelligence Content
Artificial intelligence has become an accelerator for the transition between old and new growth drivers. This year, AI has accelerated its empowerment across various industries, both upgrading traditional industries and continuously giving rise to new industries and formats, pressing the "fast-forward button" on the transition.
On the production side, in July, the value added of AI-related electronic components and equipment manufacturing and intelligent equipment manufacturing grew by 24.7% and 15.1% respectively. On the consumption side, retail sales of wearable smart devices above designated size increased by more than double in the first seven months. On the investment side, investment in information services and electronics and communication equipment manufacturing grew by 19.2% and 7.1% respectively during the same period.
Fu Linghui stated that with the deep integration of technological and industrial innovation, new forms of the intelligent economy are constantly emerging, and the supporting role of new momentum growth in economic development will continue to strengthen.
Strong Green Content
Green new momentum is being cultivated at an accelerated pace. Wang Guanhua stated that China is cultivating new industries and expanding new markets during its green transition, continuously converting ecological advantages into development advantages.
On the production side, a batch of new industries and products aligned with green and low-carbon trends are growing rapidly. In July, the value added of bio-based materials manufacturing grew by 20.6% year-on-year. Increased demand for new energy vehicles and new energy storage drove lithium-ion battery production up by 58.8%, while hydro-turbine generator sets and water quality pollution prevention equipment production increased by 79.4% and 18.6% respectively, effectively supporting domestic green transition and ecological environment governance needs.
Data shows that in the first seven months, China supported higher-quality industrial growth with lower energy consumption, with energy consumption per unit of value added for industrial enterprises above designated size decreasing 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 exceeded 60% for four consecutive months, reaching 65.1% in July—meaning that for every three passenger vehicles sold, approximately two were new energy vehicles. "New energy vehicles, energy-saving home appliances, and smart homes are increasingly favored by consumers," Wang noted.
Currently, China's economic operation is undergoing many positive and profound changes, with the development model shifting from traditional factor-driven to innovation-driven. However, industrial transformation and upgrading, as well as the transition between old and new growth drivers, are not a synchronized process. Jiang Tao, Professor at the Department of Economics and Economic Management at the Party School of the Hubei Provincial Committee, stated, "China's institutional advantages, super-large market advantages, complete industrial system advantages, and strong talent reserve advantages determine that the fundamentals of the economy's long-term improvement remain unchanged. As long as we continue to deepen reforms, promote technological innovation, prevent and resolve risks, and facilitate a smooth transition between old and new growth drivers, we can continuously unleash the potential of the super-large market and industrial innovation."