Four Key Figures Reveal China's First-Half Economic Momentum

China's economy remained on a stable growth trajectory in the first half of 2026, the opening year of the country's 15th Five-Year Plan, supported by resilient energy supply, accelerating industrial innovation, stronger consumer demand and expanding international trade. Developments across sectors including electronic information, embodied artificial intelligence and commercial space reflected growing momentum, while digital, green, cultural and health-related consumption continued to expand.

Historic milestones in installed power capacity, rapid growth in AI token usage, rising sales under the consumer trade-in program and expanding foreign trade all underscored China's transition toward higher-quality growth.

Power Capacity Tops 4 Billion Kilowatts, Highlighting Economic Stability

China's cumulative installed power generation capacity reached 4.01 billion kilowatts by the end of May, up 11.0% year on year, making it the world's largest electricity generation system.

The latest additions include the successful grid connection of Unit 9 at Longyuan Power's offshore wind farm in Dongfang, Hainan, on June 22. Once fully operational in August, the project is expected to generate 1.6 billion kilowatt-hours of clean electricity annually, enough to supply around 625,000 households.

Meanwhile, China Datang's 630°C national power demonstration project in Yuncheng County, Shandong, entered commercial operation, becoming the first coal-fired thermal power project to achieve thermal efficiency above 50%.

China doubled its installed capacity from 1 billion to 2 billion kilowatts over eight years, expanded from 2 billion to 3 billion kilowatts in four years and four months, and increased from 3 billion to 4 billion kilowatts in only about two years.

The accelerating pace reflects the country's comprehensive industrial supply chain. China has built the world's most complete new energy equipment manufacturing chain, producing about 80% of global photovoltaic modules and roughly 60% of global wind power equipment. Supporting infrastructure, including ultra-high-voltage transmission, pumped-storage hydropower and new energy storage systems, has also expanded rapidly to improve grid integration.

China's energy system remained resilient despite volatility in global energy markets during the first half of the year. Stable fossil fuel production, expanding non-fossil energy generation, diversified energy imports and continued efforts to build a modern energy system strengthened national energy security.

Broader indicators also pointed to economic stability. As of June 18, more than 96% of China's summer wheat harvest had been completed, with bumper production expected despite multiple rounds of heavy rainfall.

Industrial activity remained solid. The world's largest earth-pressure-balance tunnel boring machine for high-speed rail was completed, while China's first 550-megawatt F-class gas turbine project entered full commercial operation. In May, value-added output of equipment manufacturing enterprises above designated size increased 9.5% year on year, contributing 78.4% of overall industrial growth.

Employment conditions also improved, with China's surveyed urban unemployment rate falling to 5.1% in May, down 0.1 percentage point from April.

Explosive AI Token Growth Signals New Industrial Momentum

China's artificial intelligence industry expanded rapidly in the first half of 2026, with daily AI token usage reaching several quadrillion by the end of May, ranking among the highest globally.

AI is increasingly being integrated across industries. At Haihua Group's chlor-alkali production facility, intelligent systems monitor dozens of operating parameters, including vibration, temperature and pressure, enabling predictive equipment management and reducing unplanned shutdowns. By combining proprietary enterprise data with tens of thousands of professional documents, AI systems help optimize caustic soda production while reducing energy consumption.

Independent developer Wu Ruimeng also demonstrated AI's accessibility by using a no-code development platform to create an interactive window display solution for a client, allowing customers to visualize screen products directly online.

China's daily AI token usage stood at only 100 billion in early 2024 before reaching 100 trillion by the end of 2025. Growth has accelerated further in 2026, reflecting the rapid expansion of the country's intelligent economy.

According to International Data Corporation (IDC) China President Huo Jinjie, China's generative AI market is expected to approach US$100 billion by 2029, with a compound annual growth rate of approximately 68% between 2024 and 2029, making it one of the world's most active AI application markets.

Industrial upgrading also continued. During the first five months of the year, high-tech manufacturing contributed nearly 40% of industrial growth, while equipment manufacturing accounted for nearly 60%. Investment in high-tech industries rose 4.5% year on year, including increases of 11% in integrated circuit manufacturing, 24.9% in lithium-ion battery manufacturing and 13.8% in information services.

Technology-driven industrial innovation continues to strengthen China's new growth drivers.

Consumer Trade-In Program Exceeds 1 Trillion Yuan In Sales

China's consumer goods trade-in program generated more than 1 trillion yuan (US$139 billion) in sales as of June 20, benefiting 136 million consumer transactions.

The policy has encouraged purchases of home appliances, smartphones and other consumer products through government subsidies combined with manufacturer and retailer discounts. The leverage ratio of government subsidies increased from 1:7.8 in 2025 to 1:10.3 this year.

To meet demand for emerging technologies, smart glasses were included in the subsidy program for the first time. Retail sales of wearable smart devices, including smart glasses, more than doubled during the first five months of the year.

Green and intelligent consumption also accelerated. Retail sales of high-efficiency household appliances increased by more than 30% during January-May, supported by incentives targeting top-rated energy- and water-efficient products.

The vehicle trade-in program also boosted new energy vehicle adoption. The penetration rate of new energy passenger vehicles reached 61.4% in April and 62.9% in May, exceeding 60% for two consecutive months and setting new records.

Beyond the trade-in program, China's consumer market continued to expand through growing demand for smart wearable products, rising tourism, cultural performances and sporting events. Daily express parcel volume exceeded 550 million items, reflecting efficient circulation of goods, information and capital across the economy.

China-Africa Trade Reaches Record High As Opening-Up Deepens

China's trade with Africa exceeded 1 trillion yuan for the first time on record during the January-May period, reaching 1.14 trillion yuan, up 18.2% year on year, according to customs data.

The milestone coincides with the 70th anniversary of China-Africa diplomatic relations. Beginning May 1, China implemented comprehensive zero-tariff treatment for imports from 53 African countries that maintain diplomatic relations with Beijing.

Businesses are already reporting benefits. Importers said tariff reductions lowered costs for products such as South African apples, while companies investing in Africa expect zero-tariff policies to encourage greater manufacturing investment, local supply chain development and after-sales service networks.

China first introduced zero-tariff treatment for selected products from Africa's least-developed countries in 2005 and has steadily expanded product coverage, beneficiary countries and trade facilitation measures. This year, China became the first major economy to grant unilateral, comprehensive zero-tariff treatment to all African countries with diplomatic relations and all least-developed countries with diplomatic ties.

China has remained Africa's largest trading partner for 17 consecutive years.

The record China-Africa trade performance reflects China's broader commitment to high-level opening-up. The country currently implements zero-tariff policies for 63 countries, has signed 24 free trade agreements with 31 countries and regions, expanded the number of pilot free trade zones to 23, and continued hosting major trade promotion events while introducing new measures to stabilize and improve foreign investment.

During the first five months of 2026, China's total goods trade reached 20.68 trillion yuan, up 15.3% year on year, while the number of newly established foreign-invested enterprises increased 5.3% to 25,297.

As global trade patterns continue to evolve, China says it will further expand market access and deepen international economic cooperation, aiming to provide greater stability and development opportunities for the global economy.