Key facts
- China's national GDP growth slowed to 4.7% in the first half of 2026.
- Provinces focused on high-tech manufacturing, such as Guangdong and Zhejiang, saw accelerated growth.
- Regions reliant on traditional industries and property experienced slower economic expansion.
- Anhui province's economy grew significantly, driven by electric vehicles and electronics manufacturing.
- President Xi Jinping has called on major provinces to spearhead technological innovation and industrial upgrading.
China's economic performance in the first half of 2026 shows a significant divergence between regions, with provinces at the forefront of high-tech manufacturing outperforming those reliant on traditional industries. National GDP growth eased to 4.7% from 5.0% in 2025, highlighting an uneven economic transition.
Southern Guangdong, eastern Zhejiang, Shanghai, Anhui, and Shandong were notable exceptions, accelerating their growth rates. These regions are heavily involved in advanced manufacturing, semiconductors, AI, and high-value exports. Zhejiang led with a 5.7% expansion, followed closely by Shandong, Anhui, and Shanghai at 5.6%, driven by sectors including semiconductors, electric vehicles, robotics, and artificial intelligence.
In contrast, provinces with greater exposure to the property market and traditional industries, such as Hunan, Jilin, Shanxi, and Liaoning, experienced much slower growth, with rates ranging from 2.1% to 2.7%. This disparity underscores the challenges for regions that have not yet developed strong new-economy industries.
Anhui, in particular, saw its GDP reach 2.74 trillion yuan ($404.9 billion), propelled by a 44.6% surge in high-tech manufacturing output and a 29% rise in auto manufacturing. Its exports also soared, with high-tech exports increasing by 78.3%, helping to offset a significant decline in property investment and weak consumer spending.
President Xi Jinping has urged China's major provinces to take the lead in innovation and industrial upgrading, emphasizing the development of "new productive forces" to ensure national economic stability. Despite these efforts, consumption and investment remained weak across much of the country, with retail sales growth exceeding 2% in only four of the top 10 richest regions. Fixed-asset investment declined in at least 18 provincial economies.
Economists anticipate that local governments will accelerate planned investment projects to meet the national growth target of 4.5% to 5%. However, analysts note that GDP rankings are no longer the sole measure of local government performance, with debt resolution, social welfare, and environmental goals also becoming critical assessment criteria.