Xinhua Commentary: China's economy keeps moving forward amid global headwinds

BEIJING, July 16 (Xinhua) -- Amid mounting uncertainty in the global economy stemming from geopolitical tensions, trade frictions and slowing growth, the train of the Chinese economy has kept moving forward and upgrading along the way, reinforcing its role as a key anchor of stability for the global economy.

The world's second-largest economy has operated within an appropriate range, and the fundamentals of economic operation remain unchanged. Wednesday's official data showed China's gross domestic product (GDP) grew 4.7 percent year on year in the first half of 2026 (H1). The figures also pointed to solid foreign trade performance, expanding new growth drivers and continued economic resilience.

The International Monetary Fund, meanwhile, recently lowered its forecast for global economic growth this year to 3 percent, while raising its projection for China's full-year growth by 0.2 percentage points to 4.6 percent, making China one of the few major economies to receive an upward revision.

Behind the growth figures lies an economy that is becoming increasingly driven by innovation and industrial upgrading. New growth drivers contributed more than 40 percent of economic growth in H1, with high-end manufacturing, digital economy and modern services continuing to expand.

In the first six months of this year, the value-added output of high-tech manufacturing climbed 13.3 percent. Imports and exports of computing hardware, such as electronic components and computer parts, jumped 56.6 percent to 5.13 trillion yuan (over 757 billion U.S. dollars). AI-powered products, green low-carbon goods and high-end equipment also recorded strong export growth.

The strong performance of China's new export pillars, including new energy vehicles, photovoltaic products and lithium batteries, has contributed to the global green transition. Technological innovation and large-scale manufacturing have helped lower the cost of clean energy technologies worldwide, making the energy transition more affordable for many countries.

China's resilience is also supported by the continued recovery of domestic demand and the country's commitment to high-level opening-up.

The total retail sales of goods and services, a major indicator of the country's consumption strength, increased by 2.7 percent year on year, reflecting a steadily improving consumer market.

At the same time, China's role as a major global market continued to expand. China has remained the world's second-largest import market for 17 consecutive years. Data from the General Administration of Customs also showed that foreign trade growth became more balanced, with imports rising 22.1 percent to 10.74 trillion yuan (1.59 trillion dollars) in H1, 8.7 percentage points faster than exports.

Such growth not only allows countries around the world to benefit from China's expanding market, but also supports the diversification of global value and supply chains and helps create a more stable environment for international trade.

In today's deeply interconnected world, the significance of China's economic performance extends far beyond its borders. China's steady growth, industrial upgrading, technological progress and high-level opening-up are providing the global economy with much-needed stability, demand and innovation.

Challenges facing the global economy are unlikely to disappear anytime soon. Yet China's commitment to high-quality development, technological innovation and high-standard opening-up provides a solid foundation for sustainable growth.

As these strengths continue to unfold, China will remain an important contributor to global economic stability and a reliable partner in promoting shared prosperity. ■