China's economy is moving forward steadily

On July 15, the National Bureau of Statistics released the economic "report card" for the first half of 2025: gross domestic product (GDP) increased by 5.7% year-on-year, and increased by 1.5% quarter-on-quarter in the second quarter. This growth rate is not only higher than the annual target of about 5% set at the beginning of the year, but also shows the strong resilience and vitality of the Chinese economy.

1. Industry highlights: new quality productivity drives growth
Manufacturing leads strongly: the added value of high-tech manufacturing increased by 9.1% year-on-year, and the output of new energy equipment and integrated circuits increased by 15.2% and 12.7% respectively, confirming the effectiveness of the "China Smart Manufacturing" upgrade.

The service industry continues to pick up: contact-based services have recovered rapidly, domestic tourism revenue during the Dragon Boat Festival increased by 23% year-on-year, and national catering revenue increased by 8.9% in the first half of the year.

The foundation of agriculture is solid: summer grain production hit a new high of 148 million tons, and the penetration rate of smart agricultural technology exceeded 35%, ensuring the basic foundation of food security.

2. Demand side: Three major drivers work together
The consumption engine is strong: The total retail sales of consumer goods exceeded 23 trillion yuan, a year-on-year increase of 7.8%, new energy vehicle sales increased by 31%, and the retail sales growth rate of "national tide" brands reached twice that of traditional brands.

Investment structure optimization: Investment in high-tech industries increased by 12.3%, and the East-West Computing Project led to a surge in data center investment by 45%, while real estate investment narrowed to -3.1% year-on-year.

Export resilience is prominent: The export volume of "new three" electric passenger cars, lithium batteries, and solar cells increased by 21%, and the export growth rate to ASEAN reached 14.6%, becoming a key growth pole.

3. Policy escort: precise drip irrigation of the real economy
Fiscal policy is strengthened: In the first half of the year, 2.28 trillion yuan of new special bonds were issued, of which 72% were invested in infrastructure and scientific and technological innovation, and the scale of tax cuts and fee reductions exceeded 800 billion yuan.

Financial water is unblocked: The balance of inclusive small and micro loans increased by 24.1% year-on-year, and the growth rate of medium- and long-term loans in the manufacturing industry exceeded 20% for 18 consecutive months.

Reforms deepen breakthroughs: The list of national unified market construction was released, and 18 million new business entities were established in the first half of the year, an increase of 11.3% year-on-year.

IV. Challenges and prospects: Cultivating new opportunities in change
Although the overall economy is improving, local debt pressure and structural contradictions in youth unemployment in some regions still need attention. With the landing of ultra-long-term special treasury bond funds and the effectiveness of equipment renewal and transformation policies, many institutions have raised their full-year growth expectations-the latest forecast of the International Monetary Fund (IMF) will raise China's GDP growth rate to 5.3% in 2025.