China’s major economic provinces see robust new growth drivers in first-half 2026

Nine major economic provinces and municipalities across China have released their half-year economic performance data for 2026, following official economic operation briefings issued by Jiangsu and Zhejiang on 22 July. The regional growth data highlights rapid expansion in high-end manufacturing, strategic emerging industries, integrated circuit production and artificial intelligence manufacturing, with new industrial momentum consolidating its role in driving regional economic development.

China’s national gross domestic product reached 69.6 trillion yuan in the first half of 2026, representing a year-on-year increase of 4.7 per cent. Seven out of the nine major provincial economies posted GDP growth rates exceeding the national average. Zhejiang recorded a 5.7 per cent rise, while Shandong and Shanghai both achieved 5.6 per cent growth. Jiangsu registered 5.2 per cent growth, Hubei and Henan each hit 5.0 per cent, and Sichuan stood at 4.8 per cent.

In terms of economic output scale, Jiangsu’s regional GDP surpassed seven trillion yuan in the first half to reach 7.0387 trillion yuan. Shandong’s GDP totalled 5.3173 trillion yuan, and Zhejiang’s stood at 4.7937 trillion yuan. Sichuan, Henan and Hubei all recorded regional GDP exceeding three trillion yuan over the six-month period.

New economic momentum has become a core pillar of China’s growth in 2026, with high-end manufacturing, digital intelligent industries and modern services contributing more than 40 per cent of national economic growth in the first half. Economic data from major provinces demonstrates a clear structural shift toward high-quality and innovation-driven development.

Advanced manufacturing sectors delivered strong growth across regional economies. In Zhejiang, the value-added output of high-tech manufacturing, core digital economy manufacturing and equipment manufacturing rose 16.2 per cent, 15.5 per cent and 13.1 per cent year on year respectively, driving provincial industrial growth by 2.8, 2.7 and 6.7 percentage points. Hubei’s high-tech manufacturing value-added output jumped 36.8 per cent, accounting for 78.2 per cent of the growth in the province’s industrial output above designated size.

Artificial intelligence-related industries maintained outstanding expansion momentum. Jiangsu’s high-tech manufacturing and digital product manufacturing value-added output grew 14.8 per cent and 13.5 per cent year on year. Output of AI-linked industrial products including electronic components, integrated circuits, robot reducers and industrial robots all achieved double-digit growth rates.

Sichuan’s smart manufacturing sectors recorded rapid growth, with output of other intelligent consumer equipment manufacturing rising 150 per cent and intelligent vehicle equipment manufacturing growing 48.0 per cent. Production of projection equipment, service robots and industrial robots increased 120 per cent, 87.4 per cent and 15.7 per cent respectively. The province is accelerating the layout of 25 emerging industrial tracks, with embodied intelligence and human-machine collaboration technologies generating fresh industrial growth potential.

Industrial upgrading and green transformation have fuelled additional growth momentum alongside emerging tech industries. Sichuan’s green and low-carbon advantageous industries achieved 9.9 per cent growth in value-added output, with power battery and titanium and vanadium industries rising 36.7 per cent and 17.8 per cent respectively. Henan’s production of lithium-ion batteries and new energy vehicles increased 89.5 per cent and 28.5 per cent year on year.

Digital transformation and AI penetration have accelerated the expansion of high-tech industries, digital sectors and modern services across eastern and central provincial economies. Global technological advances in artificial intelligence have boosted market demand for high-end computing and storage chips, supporting steady expansion in domestic integrated circuit output. Sustained progress in green and low-carbon transition continues to drive robust production growth for new energy and energy-saving products.

Industrial enterprise profitability has improved across the board, driven by rising industrial output and recovering industrial product prices. Technology-intensive sectors linked to new growth momentum, including electronics and non-ferrous metals, have seen notable profit improvements. Downstream industrial sectors have experienced mild year-on-year declines in profit margins.

Structural adjustments between traditional and emerging growth drivers continue to unfold. New momentum generated by artificial intelligence and advanced manufacturing sectors is gradually offsetting downward adjustments in traditional industries. Macroeconomic policies will continue to strengthen counter-cyclical regulation, optimise existing policy implementation and reserve incremental policy tools, while removing institutional barriers to ensure steady economic operation and smooth transition between old and new growth drivers.