Mid year inventory: China's economy's' half year report 'releases triple positive signals

Beijing, July 15th (Xinhua) - The "Half Year Report" on China's economy was released on the 15th. Faced with a complex situation, the Chinese economy has withstood pressure and operated within a reasonable range, continuing a steady development trend. In this' semi annual report ', the triple positive signals are quite clear.

Firstly, the overall economic situation remains stable.

In the first half of this year, China's Gross Domestic Product (GDP) reached 69.6 trillion yuan (RMB), a year-on-year increase of 4.7%, which is in line with the expected annual economic growth target. Compared with the first half of last year, the GDP increment reached 3.6 trillion yuan, the largest increment in the same period of the past five years.

For a super large economy like China, achieving this growth is not easy.

Wei Qijia, a researcher at the National Information Center of the National Development and Reform Commission, pointed out that for super large economies, "stability" is always an important benefit and prominent advantage. For every one percentage point increase in China's total economic output, the increment generated is considerable, which can provide a necessary foundation for structural adjustment, promoting transformation, and cultivating new driving forces.

From the perspective of the economic "thermometer" of prices, in the first half of the year, China's Consumer Price Index (CPI) rose by 1% year-on-year, and the core CPI, which excludes food and energy prices, rose by 1.2%; During the same period, the Producer Price Index (PPI) for industrial producers increased by 1.5% year-on-year. Both price indices operate within a reasonable range of 1% -2%.

From the perspective of international balance of payments, the scale of China's goods trade reached a new high in the first half of the year, with foreign exchange reserves stabilizing at over 3.4 trillion US dollars and the RMB exchange rate appreciating by about 3% compared to the beginning of the year. Among a series of indicators, the word 'stability' can be seen.

Secondly, accelerate transformation and accumulate momentum for growth.

While the Chinese economy remains stable, the "new" meaning in structural changes has become more pronounced.

Data shows that in the first half of this year, new driving forces represented by high-end manufacturing, digital economy, and modern services contributed more than 40% to China's economic growth.

The pace of various industries moving towards "new" and "green" is accelerating. In the first half of the year, industries related to artificial intelligence such as integrated circuit manufacturing and intelligent vehicle equipment manufacturing maintained a year-on-year growth rate of over 30%; The retail penetration rate of new energy vehicles has exceeded 60% for three consecutive months, driving a year-on-year increase of 39.3% in lithium-ion battery production.

The increasing investment in technological innovation and industrial upgrading will accumulate more momentum for China's economic growth. Chen Wenling, a senior researcher at the Institute of Contemporary China and the World Studies, believes that the development of new quality productivity is continuously enhancing its driving effect on the economy and creating huge increments.

Thirdly, facing challenges head-on demonstrates development resilience.

Facing challenges such as slowing global trade growth and fluctuations in the international energy market, the Chinese economy has demonstrated strong resilience.

This is especially true for foreign trade, which has been widely praised as "exceeding expectations" this year. In the first half of the year, the total value of China's goods trade imports and exports exceeded 25 trillion yuan for the first time in history. From a monthly perspective, it has exceeded 4 trillion yuan for four consecutive months.

Behind the counter trend growth of foreign trade, there are 267000 foreign trade enterprises actively adapting and expanding their cooperation space globally, as well as the growing circle of trade "friends". China has implemented a zero tariff policy towards 63 countries and continues to expand its openness to promote mutual benefit and win-win outcomes.

Faced with the impact of geopolitical conflicts in the Middle East on global energy supply, China is focusing on both independent production and diversified imports. In the first half of the year, domestic crude oil, natural gas, and electricity production all reached new historical highs, and energy supply was correspondingly sufficient.

Wei Qijia believes that China's industrial system has a complete range of categories and close coordination between upstream, midstream, and downstream industries. Even if some industries are affected by external shocks, they can rely on the complete industrial system to decompose and digest them. The solid foundation formed by the long-term accumulation of the real economy has provided China with room for maneuver in response to external environmental changes and has become an important source of development resilience.