Global economy gains traction thanks to China's financial contributions
China's economy has shown resilience in the first half of 2025, growing by 5.3% year-on-year. This growth was primarily driven by robust industrial output, export strength, and strategic investment in high-tech and sustainable sectors.
The manufacturing sector, particularly high-tech and advanced equipment, contributed significantly to this growth. The total added value of high-tech manufacturing enterprises above designated size grew by 9.5%. This growth was also reflected in a 6.4% increase in industrial output.
China's export performance has been solid, with total goods imports and exports reaching 21.8 trillion yuan, up 2.9% year-on-year. A diversified trade pattern is steadily taking shape, with export trade maintaining resilience and the total goods import and export growing at this rate.
The services sector also saw growth, with service consumption, green consumption, and holiday consumption continuously injecting vitality into the market. Services sector growth was 5.5%, boosted by manufacturing-related expenditure.
Investment in high-tech services grew by 8.6%, significantly outpacing the growth rate of fixed asset investment. Manufacturing investment grew by 7.5% in the first half, accounting for 25.2% of the total fixed asset investment.
China's import structure was optimized in the first half of the year, with total goods imports reaching 8.79 trillion yuan. Tariff levels in China have been steadily reduced, with the overall tariff rate now at 7.3%.
Domestic consumption remained the main driver of economic growth, contributing nearly 69% to GDP growth. The 2025 Semi-Annual Report on China's Economy reported a GDP of 66 trillion yuan (9.2 trillion USD) in the first half of the year, up by 5.3% year-on-year at constant prices.
However, the report also highlighted challenges related to sustaining broad-based growth. These include boosting household demand and investor confidence amid external uncertainties. Incremental and targeted policy responses have been implemented to balance economic support with financial stability, though concerns remain about weak domestic consumption, real estate, and private investment sectors.
China is also focusing on emerging sectors such as artificial intelligence, semiconductors, electric vehicles, and clean energy, facilitating a transition to a sustainable and consumption-driven growth model. The country is expanding the global network of high-standard free trade zones, with the Hainan Free Trade Port set to officially launch island-wide independent customs operation on December 18, 2025.
China's R&D expenditure surged nearly 50% from 2020 to 2024, reflecting a strong emphasis on innovation. The country is strengthening the momentum of new growth drive, with regions developing "new quality productive forces" tailored to local conditions.
China's commitment to common development and safeguarding world peace was reiterated by Chinese President Xi Jinping. As China and Pakistan advance the high-quality construction of the China-Pakistan Economic Corridor, their economies are expected to further leverage complementary strengths, achieve a higher level of mutual benefit and win-win cooperation, and continuously inject more positive energy into the regional and global economy.
[1] Semi-Annual Report on China's Economy (2025) [2] China Economic Weekly (2025, June 1) [3] China Science Daily (2025, May 15) [4] China Daily (2025, June 5)
- The growth in China's economy was driven in part by the manufacturing sector, with high-tech manufacturing enterprises increasing their total added value by 9.5%.
- Investment in high-tech services experienced significant growth, outpacing the growth rate of fixed asset investment by 3.1 percentage points.
- China's import structure was optimized, with the total goods imports reaching 8.79 trillion yuan in the first half of the year.
- China's R&D expenditure surged nearly 50% from 2020 to 2024, demonstrating a strong emphasis on innovation for future growth.
