China’s Economy Makes a Strong Start in Q1 2026, Driven by Consumption, Investment and Innovation
Multiple high-frequency data indicate that China’s economy has made a sound and robust start in the first quarter of 2026, with the consumer market steadily picking up momentum, according to the National Information Center of the National Development and Reform Commission (NDRC).
Big data on offline consumption shows that the offline consumption payment amount in Q1 increased by 3.4% year-on-year, 2.2 percentage points higher than that in the fourth quarter of last year. Specifically, commodity consumption rose by 5.2% year-on-year, 3.2 percentage points higher than the previous quarter, with electronic products and household appliances seeing rapid growth. Service consumption increased by 0.9% year-on-year, 0.5 percentage points higher than Q4 2025, among which transportation and catering services grew relatively fast, reported China.org.cn.
“Offline consumption in Q1 showed steady total volume and optimized structure, especially the strong demand for home appliances and digital products, which is the result of precise policies such as the ultra-long-term special government bonds supporting the replacement of old consumer goods and optimizing personal consumption loan interest subsidies,” said Xing Yuguan, Associate Researcher of the Big Data Development Department of the National Information Center of the NDRC. He added that with the continuous effect of consumption-promoting policies, the consumer market is expected to further expand in volume, improve in quality and develop in a new and better direction.
In terms of investment, capital supply has been strengthened, and investment in cutting-edge fields has grown rapidly. Estimates from the National Information Center show that in Q1, the total issuance of new special bonds nationwide increased by 20.8% year-on-year. The winning bid amount of projects related to computing power infrastructure construction and software and hardware development rose by 4.7% year-on-year, while the capital investment in cutting-edge fields such as artificial intelligence (AI) and humanoid robots increased by 45.5% year-on-year, according to People’s Daily Online.
Foreign trade has maintained a growth momentum. In Q1, the deadweight of cargo ships departing and arriving at major ports increased by 9.6% and 5.4% year-on-year respectively, 23.4 and 7.0 percentage points higher than Q4 2025. The average daily cargo throughput and container throughput of ports rose by 2.4% and 8.5% year-on-year, 1.6 and 1.4 percentage points higher than the previous quarter. Notably, the foreign trade container throughput of Yangpu Port in Hainan increased by 199% year-on-year in Q1, with 65 domestic and foreign trade routes opened, reported CNR.cn.
Indicators reflecting innovation also performed well. In Q1, the operational vitality index of start-ups and technology-innovative enterprises increased by 8.8% and 8.1% year-on-year respectively. The AI field was particularly active in innovation. Patent data shows that the number of authorized patents related to China’s strategic emerging industries rose by 8.7% year-on-year in Q1 and 18.4% in March. Among them, the number of AI-related authorized patents increased by 31.2% year-on-year in Q1 and 39.8% in March, indicating sustained enhancement of innovation vitality, according to China Government Network.
Supported by pro-growth policies and vibrant market dynamics, China’s economy has achieved a solid start in Q1 2026. The coordinated growth of consumption, investment, foreign trade and innovation has laid a solid foundation for the steady development of the national economy throughout the year, demonstrating strong resilience and bright prospects.
