The first half of the year, GDP of Chinese cities shows stable development, supported by a dynamic high-tech sector and strong foreign trade

Cargo is loaded and unloaded at Tongling Port in east China’s Anhui Province, July 19, 2024. Tongling, a river port on the Yangtze River, has committed to port construction in recent years, contributing to the city’s export-oriented economy. Photo: VCG

The Chinese economy showed resilience and vitality in the first half of 2024, as evidenced by optimistic GDP data in many provinces and municipalities, driven by favorable factors such as a thriving high-tech industry, strong foreign trade, a growing service sector and rising investment.

Observers say this progress is likely to continue in the second half of the year, thanks to strong policy support, continued industrial modernization and transformation, rising domestic demand and an optimizing business environment.

GDP in east China’s Zhejiang province rose 5.6 percent to 4.09 trillion yuan ($562.59 billion), on an unexpectedly strong trade performance as one of the country’s main trading centers. The province’s trade rose 7.8 percent year-on-year to 2.56 trillion yuan.

Beijing’s GDP rose 5.4 percent to 2.18 trillion yuan, with continued expansion of emerging industries playing a key role.

The added value of the capital’s strategic, emerging industries increased by 12.9 per cent year-on-year.

Shanghai’s GDP rose 4.8 percent year-on-year to 2.23 trillion yuan, with a booming service sector, growing leading industries and rapid investment growth as three key drivers. The city’s service industry added 5.8 percent.

The GDP of southwest China’s Sichuan province rose 5.4 percent to 2.95 trillion yuan on the back of accelerated development of the high-tech industry. The added value of the province’s high-tech manufacturing sector above the target size rose 6.9 percent.

GDP in southwest China’s Chongqing municipality rose 6.1 percent to 1.51 trillion yuan, with strong demand for digital, smart and green products from emerging sectors such as new-energy vehicles driving the local economy.

The results show that Chinese localities are supporting economic development with their industrial competitiveness and strengths, while actively leading the development of new, high-quality production forces, Li Changan, a professor at the Academy of Open Economy Studies of China at the University of International Business and Economics, told the Global Times on Sunday.

Increased policy support for provinces and cities across various sectors has contributed to the stable economic growth, said Wang Peng, an assistant professor at the Beijing Academy of Social Sciences.

Wang told the Global Times on Sunday that the targeted policies had secured economic progress in the first half of the year and would lay a solid foundation for the rest of the year.

The local government’s GDP announcements came in tandem with the release of national GDP data for the first half of the year and the end of the third plenary session of the 20th Central Committee of the Communist Party of China.

China’s GDP rose 5 percent to reach 61.68 trillion yuan in the first half of 2024. Stable economic growth puts China on track to achieve its full-year growth target of around 5 percent as economic fundamentals remain positive and are expected to improve in the second half of the year.

Global confidence in China’s stable economic growth remains strong. The IMF last week raised its 2024 GDP growth forecast to 5 percent in its latest World Economic Outlook, an upward revision of 0.4 percentage points from April’s WEO report. HSBC said earlier it expected China to meet its annual GDP growth target of 5 percent.

Li and Wang said the second half of the match would present both opportunities and challenges.

They expect a further strengthening of policy support following the conclusion of the third plenary session last week, with greater stimulus accompanying active fiscal policy and prudent monetary policy.

Wang also stressed the country’s ongoing industrial upgrading and transformation. New industries will become essential engines for sound economic development, while the upgrading of traditional industries will help boost their competitiveness and market share.

Growing domestic demand and optimisation of the business climate will be the most important factors driving economic growth in the rest of the year.