Shou Xiaoli, Director of the News Bureau and Spokesperson of the State Council Information Office:

　　Ladies and gentlemen, good morning! Welcome to the press conference held by the State Council Information Office. Today, we will continue our regular release of economic data. We’ve invited Mr. Sheng Laiyun, Deputy Director of the National Bureau of Statistics, to brief you on the performance of the national economy in the first half of 2025 and to answer any questions you may have.

　　Next, we’d like to invite Mr. Sheng Laiyun to give an introduction.

　　Sheng Laiyun, Deputy Director of the National Bureau of Statistics:

　　Thank you, moderator. Good morning,各位 journalists! I’m delighted to share with you the key data on the nation’s economic performance. As is customary, I’ll first brief you on the economy’s performance in the first half of the year, and then I’ll be happy to answer any questions you may have.

　　In the first half of the year, the national economy rose to the challenge and maintained steady progress with improving trends.

　　In the first half of the year, under the strong leadership of the Party Central Committee with Comrade Xi Jinping at its core, all regions and departments earnestly implemented the decisions and deployments of the Party Central Committee and the State Council, adhered to the general tone of seeking progress while maintaining stability, fully, accurately, and comprehensively implemented the new development philosophy, accelerated the establishment of a new development pattern, coordinated domestic economic work with international economic and trade struggles, and effectively carried out more proactive and effective macro policies. As a result, the national economy withstood pressure and rose to challenges, with overall economic performance remaining stable and showing steady improvement. Production and demand grew steadily, the employment situation remained generally stable, residents’ incomes continued to rise, new growth drivers expanded and strengthened, high-quality development achieved new progress, and the overall social situation remained stable.

　　Preliminary calculations show that China's GDP for the first half of the year totaled 66,053.6 billion yuan, representing a year-on-year increase of 5.3% at constant prices. By sector, the value added of the primary industry was 3,117.2 billion yuan, up 3.7% over the same period last year; the value added of the secondary industry was 23,905 billion yuan, up 5.3%; and the value added of the tertiary industry was 39,031.4 billion yuan, up 5.5%. By quarter, GDP grew by 5.4% in the first quarter and by 5.2% in the second quarter. On a quarter-on-quarter basis, GDP increased by 1.1% in the second quarter.

　　Sheng Laiyun:

　　I. Summer grain production remained stable and achieved a bumper harvest, while the livestock industry experienced steady growth.

　　In the first half of the year, the value-added of agriculture (crop cultivation) increased by 3.7% year-on-year. The total summer grain output nationwide reached 149.74 million tons, a decrease of 1.5 million tons, or 0.1%, compared to the previous year. In the first half of the year, the output of pork, beef, mutton, and poultry meat totaled 48.43 million tons, up 2.8% year-on-year. Among these, pork, beef, and poultry meat production rose by 1.3%, 4.5%, and 7.4%, respectively, while mutton production fell by 4.6%. Milk production increased by 0.5%, and poultry egg production rose by 1.5%. At the end of the second quarter, the live pig inventory stood at 424.47 million head, up 2.2% year-on-year. In the first half of the year, the number of pigs marketed reached 366.19 million head, an increase of 0.6%.

　　II. Industrial production grew relatively rapidly, with equipment manufacturing and high-tech manufacturing showing strong growth momentum.

　　In the first half of the year, the value added of industrial enterprises above designated size nationwide increased by 6.4% year-on-year. By major industrial categories, the value added of the mining industry rose by 6.0%, manufacturing grew by 7.0%, and the production and supply of electricity, heat, gas, and water increased by 1.9%. The value added of equipment manufacturing rose by 10.2% year-on-year, while that of high-tech manufacturing grew by 9.5%, both outpacing the growth rate of all industrial enterprises above designated size by 3.8 and 3.1 percentage points, respectively. By type of ownership, state-controlled enterprises saw their value added rise by 4.2% year-on-year; joint-stock enterprises grew by 6.9%; foreign-invested and Hong Kong, Macao, and Taiwan-invested enterprises grew by 4.3%; and private enterprises grew by 6.7%. By product, the output of 3D printing equipment, new-energy vehicles, and industrial robots increased by 43.1%, 36.2%, and 35.6% year-on-year, respectively. In June, the value added of industrial enterprises above designated size rose by 6.8% year-on-year and increased by 0.50% month-on-month. In June, the manufacturing purchasing managers’ index was 49.7%, up 0.2 percentage point from the previous month; the index of enterprise expectations for production and business activities stood at 52.0%. From January to May, the total profits of industrial enterprises above designated size nationwide reached 2.7204 trillion yuan, down 1.1% year-on-year.

　　Sheng Laiyun:

　　III. Growth in the service sector is accelerating, and modern service industries are developing well.

　　In the first half of the year, the value-added of the service sector increased by 5.5% year-on-year, accelerating by 0.2 percentage points compared to the first quarter. Among these, the value-added of information transmission, software and information technology services, leasing and business services, transportation, warehousing and postal services, and wholesale and retail trades rose by 11.1%, 9.6%, 6.4%, and 5.9%, respectively. In June, the national index of service-sector production rose by 6.0% year-on-year. Specifically, the indices for information transmission, software and information technology services, leasing and business services, financial services, and wholesale and retail trades increased by 11.6%, 8.4%, 7.3%, and 6.9%, respectively. From January to May, the operating revenue of service enterprises above a designated size grew by 8.1% year-on-year. In June, the business activity index for the service sector stood at 50.1%, while the expected business activity index for the service sector reached 56.0%. Among these, the business activity indices for industries such as postal services, telecommunications, radio and television, satellite transmission services, internet software and information technology services, monetary and financial services, capital market services, and insurance all remained in the relatively high prosperity range above 55.0%.

　　IV. Market sales growth is rebounding, and sales of consumption-upgrade products are performing well.

　　In the first half of the year, total retail sales of consumer goods reached 24,545.8 billion yuan, up 5.0% year-on-year, accelerating by 0.4 percentage points compared to the first quarter. By location of operating entities, retail sales of consumer goods in urban areas totaled 21,305 billion yuan, up 5.0% year-on-year; retail sales in rural areas amounted to 3,240.9 billion yuan, increasing by 4.9%. By consumption type, retail sales of goods reached 21,797.8 billion yuan, up 5.1%; catering revenue totaled 2,748 billion yuan, up 4.3%. Sales of basic living goods and certain upgraded goods showed strong growth. Among enterprises above the designated size, retail sales of grain and oil products, sports and entertainment goods, and gold, silver, and jewelry increased by 12.3%, 22.2%, and 11.3%, respectively. The policy of trade-in programs for consumer goods continued to show positive effects: retail sales of household appliances and audiovisual equipment, cultural and office supplies, telecommunications equipment, and furniture among enterprises above the designated size rose by 30.7%, 25.4%, 24.1%, and 22.9%, respectively. Nationwide online retail sales totaled 7,429.5 billion yuan, up 8.5% year-on-year. Of this amount, online retail sales of physical goods reached 6,119.1 billion yuan, up 6.0%, accounting for 24.9% of total retail sales of consumer goods. In June, total retail sales of consumer goods rose 4.8% year-on-year but fell 0.16% month-on-month. In the first half of the year, service-sector retail sales grew 5.3% year-on-year, accelerating by 0.3 percentage points compared to the first quarter.

　　Sheng Laiyun:

　　V. Fixed-asset investment continued to expand, with manufacturing investment growing relatively rapidly.

　　In the first half of the year, nationwide fixed-asset investment (excluding rural households) totaled 24,865.4 billion yuan, up 2.8% year-on-year. Excluding real estate development investment, nationwide fixed-asset investment grew by 6.6%. By sector, infrastructure investment rose by 4.6% year-on-year, manufacturing investment increased by 7.5%, while real estate development investment declined by 11.2%. The nationwide sales area of newly built commercial residential properties reached 458.51 million square meters, down 3.5% year-on-year; sales value of newly built commercial residential properties amounted to 4,424.1 billion yuan, a decrease of 5.5%. By industry, investment in the primary sector rose by 6.5% year-on-year, investment in the secondary sector grew by 10.2%, and investment in the tertiary sector fell by 1.1%. Private investment declined by 0.6% year-on-year; excluding real estate development investment, other private investment grew by 5.1%. Among high-tech industries, investment in information services, aircraft and spacecraft manufacturing, and computer and office equipment manufacturing increased by 37.4%, 26.3%, and 21.5% year-on-year, respectively. In June, fixed-asset investment (excluding rural households) fell by 0.12% month-on-month.

　　6. Imports and exports of goods continue to grow, and the structure of trade continues to be optimized.

　　In the first half of the year, the total value of goods imports and exports reached 21,787.6 billion yuan, an increase of 2.9% year-on-year. Among them, exports totaled 13,000 billion yuan, up 7.2%; imports amounted to 8,787.5 billion yuan, down 2.7%. Imports and exports by private enterprises grew by 7.3%, accounting for 57.3% of the total import and export volume—a rise of 2.3 percentage points over the same period last year. Trade with countries jointly building the Belt and Road Initiative increased by 4.7%. Exports of electromechanical products rose by 9.5%, accounting for 60.0% of total exports. In June, the total value of imports and exports reached 3,852.7 billion yuan, up 5.2% year-on-year. Specifically, exports totaled 2,339.4 billion yuan, an increase of 7.2%; imports reached 1,513.4 billion yuan, up 2.3%.

　　Sheng Laiyun:

　　7. Resident consumer prices remained generally stable, and the core CPI showed a moderate rebound.

　　In the first half of the year, the national consumer price index (CPI) fell by 0.1% year-on-year. By category, food, tobacco, and alcohol prices declined by 0.3%, clothing prices rose by 1.3%, housing prices increased by 0.1%, prices for daily-use goods and services remained unchanged, transportation and communication prices fell by 2.9%, education, culture, and recreation prices rose by 0.8%, medical care prices rose by 0.3%, and prices for other goods and services climbed by 6.7%. Among food, tobacco, and alcohol prices, fresh vegetable prices dropped by 5.3%, grain prices fell by 1.3%, fresh fruit prices rose by 2.7%, and pork prices rose by 3.8%. In June, the national CPI rose by 0.1% year-on-year but fell by 0.1% month-on-month. In the first half of the year, the core CPI—excluding food and energy prices—rose by 0.4% year-on-year, an increase of 0.1 percentage point compared to the first quarter. Specifically, in June, the core CPI rose by 0.7% year-on-year, expanding by 0.1 percentage point from the previous month.

　　In the first half of the year, the national ex-factory price index for industrial producers fell by 2.8% year-on-year. Among them, in June, the index declined by 3.6% year-on-year and by 0.4% month-on-month. In the first half of the year, the purchase price index for industrial producers fell by 2.9% year-on-year. Specifically, in June, the index dropped by 4.3% year-on-year and by 0.7% month-on-month.

　　8. The employment situation remains generally stable, with the surveyed urban unemployment rate showing a slight decline.

　　In the first half of the year, the average urban surveyed unemployment rate nationwide was 5.2%, down 0.1 percentage point from the first quarter. In June, the national urban surveyed unemployment rate stood at 5.0%. The surveyed unemployment rate for locally registered workers was 5.1%; for migrant workers with non-local household registration, it was 4.8%, including 4.8% for migrant agricultural workers. The surveyed urban unemployment rate in 31 major cities was 5.0%. The average weekly working hours of employed persons in enterprises nationwide were 48.5 hours. At the end of the second quarter, the total number of rural migrant workers engaged in off-farm employment reached 191.39 million, an increase of 0.7% over the same period last year.

　　Sheng Laiyun:

　　9. Residents’ incomes grew steadily, with rural residents’ incomes increasing faster than those of urban residents.

　　In the first half of the year, the per capita disposable income of national residents reached 21,840 yuan, representing a nominal increase of 5.3% over the same period last year, and an actual increase of 5.4% after adjusting for price factors. By place of residence, urban residents had a per capita disposable income of 28,844 yuan, up 4.7% in nominal terms and 4.7% in real terms compared to the same period last year; rural residents saw a per capita disposable income of 11,936 yuan, with a nominal increase of 5.9% and a real increase of 6.2%. In terms of income sources, the per capita wage income, net business income, net property income, and net transfer income of national residents rose by 5.7%, 5.3%, 2.5%, and 5.6% in nominal terms, respectively. The median per capita disposable income of national residents was 18,186 yuan, up 4.8% in nominal terms over the same period last year.

　　Overall, the more proactive and effective macro policies implemented in the first half of the year have begun to yield results, and the economy has continued its steady and improving trajectory, demonstrating strong resilience and vitality. At the same time, we must recognize that external factors remain highly unstable and uncertain, and domestic demand remains insufficient. Thus, the foundation for the economy’s recovery and improvement still requires further strengthening and consolidation. In the next phase, we must adhere to Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era as our guiding principle, uphold the general tone of seeking progress while maintaining stability, fully, accurately, and comprehensively implement the new development philosophy, accelerate the establishment of a new development pattern, coordinate domestic economic work with international economic and trade struggles, unswervingly focus on doing our own things well, further strengthen the domestic major circulation, and use the certainty of high-quality development to address external uncertainties, thereby promoting the sustained, stable, and healthy development of the economy.

　　The above is the economic performance report for the first half of the year that I’ve shared with you all. Next, I’d be happy to answer any questions you may have.

　　Shou Xiaoli:

　　Thank you, Deputy Director Sheng Laiyun, for your introduction. Now we’ll begin the Q&A session. Before asking your question, please state the name of your news organization.

　　CCTV reporter from China Media Group:

　　Since the beginning of this year, despite a complex external environment, China’s economy has withstood pressure and maintained steady operation. How would you evaluate the overall performance of the economy in the first half of the year? What are the main reasons behind this performance? Thank you.

　　Sheng Laiyun:

　　Thank you for your question. Since the beginning of this year, the international environment has become increasingly complex and volatile, dealing a severe blow to the global economic and trade order and heightening instability and uncertainty. Faced with this intricate situation, under the strong leadership of the Party Central Committee with Comrade Xi Jinping at its core, all regions and departments have earnestly implemented the decisions and deployments of the Party Central Committee and the State Council. They have consistently balanced domestic economic development with international economic and trade struggles, stepped up efforts to carry out more proactive and effective macro policies, and focused on stabilizing employment, supporting enterprises, safeguarding markets, and anchoring expectations. As a result, the national economy has continued to move forward under pressure and maintained stable operations. Major economic indicators have performed better than expected, high-quality development has been steadily advanced, and the economy has sustained a development trend characterized by stability with progress and steady improvement. Here, I’d like to summarize the key features of the economy’s performance in the first half of the year in four sentences:

　　First, the “stable” trend continues. A prominent feature of the first half of the year has been the “stable” performance of the economy. Looking at the four major macroeconomic indicators, growth has remained stable with a slight upward trend. In the first half of the year, GDP grew by 5.3% year-on-year—5.4% in the first quarter and 5.2% in the second quarter. The growth rate for the first half of the year was 0.3 percentage points higher than both the same period last year and the full year’s growth rate. Last year, both the first-half and full-year GDP growth rates were 5%, so this year’s growth has been stable yet slightly increasing. The surveyed unemployment rate has remained generally stable; since the beginning of this year, the monthly surveyed unemployment rate has fluctuated mainly within the range of 5.0% to 5.4%, indicating overall stability. Prices have also remained low and broadly stable. This year, in several months, the CPI fell by 0.1% year-on-year; however, in June, the CPI turned positive, rising by 0.1%. In particular, the core CPI in June rebounded to 0.7%. The balance of payments has also been broadly balanced: our merchandise trade imports and exports reached new highs for the same period, and foreign exchange reserves have stayed above 3.2 trillion U.S. dollars. Judging from these four major macroeconomic indicators, we believe that the overarching tone of “stable” economic performance remains unchanged.

　　Second, the pace of “progress” remains firm. While maintaining stable economic performance, localities are steadfastly promoting economic transformation and high-quality development. Judging from the data, new achievements have been made in innovative development, coordinated development, green development, open development, and shared development.

　　Third, there’s an accumulation of “new” growth drivers. Localities have been developing new forms of productive forces tailored to their specific conditions, stepping up efforts to integrate technological innovation with industrial innovation. As a result, new industries, new technologies, and new business models continue to grow at a relatively rapid pace. In the first half of the year, value added in high-tech industries rose by 9.5% year-on-year, and in 2024, the share of value added from the “three new” industries in GDP reached around 18%, indicating that new growth drivers are steadily accumulating.

　　Fourth is the continuous improvement of the “smooth” circulation. Since the beginning of this year, in response to external challenges, China has placed greater emphasis on strengthening and expanding the domestic major circulation, introducing a series of policies aimed at boosting domestic demand, promoting production, and ensuring smooth circulation. According to statistical data, flows of people, goods, and capital are all improving. In the first half of the year, domestic demand contributed 68.8% to GDP growth, with final consumption expenditure accounting for 52% of that contribution—making it the primary driver of growth. Economic performance is improving: in the first half of the year, freight turnover increased by 5.1% year-on-year, and passenger turnover rose by 4.9%. The central bank just released data showing that M2 grew by 8.3% year-on-year as of the end of June.

　　Based on the four aspects mentioned above, we can conclude that the economy performed generally steadily in the first half of the year, showing steady progress and improving trends—a highly impressive achievement. This outcome has been particularly remarkable given the sharp changes in the international situation and the significantly increased external pressures since the second quarter. Of course, we are also keenly aware that the external environment remains complex and volatile, internal structural contradictions have yet to be fundamentally alleviated, and the foundation for economic stability still needs to be further strengthened. In the next phase, we must unswervingly implement the decisions and deployments of the Party Central Committee, bolster and expand the domestic major circulation, maintain confidence and composure, stay committed to doing our own job well, and firmly promote high-quality economic development. By leveraging the certainty of China’s high-quality economic growth to counter external uncertainties, we will continue to steer China’s economy toward stable and sustained progress. Thank you.

　　Bloomberg News reporter:

　　Could the National Bureau of Statistics please provide the contribution rates of final consumption expenditure, net exports, and gross capital formation to second-quarter economic growth? Thank you.

　　Sheng Laiyun:

　　Let me briefly share some data: In the first half of the year, the contribution rates of the “three driving forces” (final consumption expenditure, total capital formation, and net exports of goods and services) were as follows: final consumption expenditure contributed 52% to economic growth, total capital formation contributed 16.8%, and net exports of goods and services contributed 31.2%. Specifically, in the second quarter, final consumption expenditure’s contribution to economic growth was 52.3%, a slight increase from the first quarter; total capital formation’s contribution was 24.7%, and net exports of goods and services’ contribution was 23%. These figures clearly show that domestic demand—especially consumption—is the primary driver behind GDP growth. Thank you.

　　Economic Daily reporter:

　　According to the released data, investment growth in the first half of the year has shown some fluctuations. What are the reasons behind this? How do you view the investment trend for the second half of the year? Thank you.

　　Sheng Laiyun:

　　Thank you for your question. Indeed, investment growth in the first half of the year has experienced some fluctuations. Regarding the investment situation, I’d like to share a few observations.

　　First, although the nominal growth rate of investment slowed down in the first half of the year, after adjusting for price changes, the real growth rate of fixed-asset investment remained broadly stable, and the structure of investment is improving. The data just released show that fixed-asset investment in the first half of the year totaled 24.9 trillion yuan, representing a nominal increase of 2.8%. However, as everyone knows, since the beginning of this year, prices of means of production—especially construction materials—have fallen significantly. After stripping out the impact of these price changes, the real growth rate of fixed-asset investment came in at 5.3%. Compared with the same period last year, this real growth rate fell by 0.3 percentage points, but it was still 0.5 percentage points higher than the real growth rate for the entire last year. Thus, the slowdown in investment growth was not as pronounced as the nominal growth rate might suggest; overall, investment growth has remained relatively steady. Taking price factors into account, the actual volume of investment work undertaken has not been low. Moreover, the structure of investment continues to optimize and improve: in the first half of the year, investment in manufacturing grew by 7.5%, accounting for 25.2% of total fixed-asset investment—a rise of 1.1 percentage points from the same period last year. Investment in high-tech service industries rose by 8.6%, also significantly faster than the overall growth rate of fixed-asset investment. From these figures, it’s clear that the structure of investment continues to improve.

　　Second, the fluctuations and slight slowdown in investment growth are attributable to both immediate factors and deeper-rooted causes. The immediate factors primarily include a complex and ever-changing external environment, declining domestic prices, and intensifying competition among enterprises, which have prompted market participants to adopt a more cautious approach to investment decision-making. From a deeper perspective, since China has entered a new stage of development, the mode of development is undergoing a transformation, and old and new growth drivers are shifting. As a result, investment in traditional industries has become relatively saturated, and some production capacity needs to be eliminated—for instance, real estate investment continued to decline in the first half of this year. To some extent, these adjustments in traditional industries will increase pressure on investment growth in the short term. Therefore, we need to take a comprehensive view of the changes in investment growth rates.

　　Third, at this stage, the potential for fixed-asset investment remains substantial, and we must focus on boosting the enthusiasm of private investment. A slowdown in investment growth does not necessarily mean that the scope for investment is shrinking. On the contrary, at this stage, there is enormous potential for high-quality development investment—for instance, in areas such as new-quality productivity, as well as in urban renewal and upgrading, and in addressing shortcomings in people’s livelihoods—all of which call for effective investment. Therefore, we need to better align with the requirements of high-quality development, optimize our investment layout, improve the investment environment, fully stimulate the enthusiasm of private investors, and continuously promote the healthy development of investment.

　　Thank you.

　　Southern Daily, Southern+ Reporter:

　　Since the beginning of this year, measures to stabilize the property market have been continuously introduced. Could you share your views on the performance of the real estate market in the first half of this year? What positive changes have we seen? Thank you.

　　Sheng Laiyun:

　　Since the beginning of this year, various regions and departments have, in accordance with the Party Central Committee’s strategic plans and requirements for halting the decline and stabilizing the real estate market, introduced targeted measures tailored to local conditions to promote the stabilization of the real estate sector. According to statistical data, these policy measures have yielded significant results. Although the real estate market experienced some fluctuations in the first half of the year, overall it continues to move toward halting the decline and achieving stability. From the perspective of policy effectiveness, the main impacts are evident in three key areas:

　　First, market trading volumes have improved, and the decline in sales of commercial residential properties has narrowed year-on-year. In the first half of the year, the nationwide sales area of newly built commercial residential properties fell by 3.5% year-on-year, a narrowing of 15.5 percentage points compared to the same period last year and a narrowing of 9.4 percentage points compared to the whole of last year. The sales value of commercial residential properties declined by 5.5%, with the rate of decline narrowing even more—by 19.5 percentage points compared to the same period last year and by 11.6 percentage points compared to the whole of last year. Overall, transactions in commercial residential properties remain relatively active, especially for second-hand homes, whose trading volume has increased compared to the same period last year.

　　Second, the overall decline in market prices has narrowed, and some cities have even seen price increases. Today, we are releasing housing price data for 70 large and medium-sized cities for June. According to these price figures, although sales prices of newly built commercial residential properties in first-, second-, and third-tier cities have experienced some fluctuations, the year-on-year decline in these prices has narrowed compared to the same period last year. The data show that the year-on-year decline in sales prices of newly built commercial residential properties in first-, second-, and third-tier cities narrowed by 0.3, 0.5, and 0.3 percentage points, respectively, compared to the previous month.

　　Third, the sources of funding for the real estate market have improved somewhat. Driven by the “whitelist” policy and the recovery in real estate sales, real estate companies are steadily advancing their debt-reduction efforts. Specifically, in the first half of the year, the decline in funds received by real estate developers narrowed by 16.4 percentage points compared to the same period last year and by 10.8 percentage points compared to the full year last year. Among these, domestic loans increased by 0.6% year-on-year, whereas last year domestic loans had declined by around 6%. Inventory reduction has also yielded positive results. As of the end of June, the nationwide area of commercial housing awaiting sale had decreased by 4.79 million square meters compared to the end of May, marking a fourth consecutive month of decline.

　　Therefore, the positive changes in these three areas indicate that the policies aimed at macro-level real estate regulation are yielding fairly noticeable results. Of course, we must also recognize that both the sales area and sales value of real estate are currently declining. It will take time for the real estate market to reach its bottom, and it’s entirely normal for relevant indicators to experience some fluctuations during the bottoming-out and transition phases. This underscores the need for us to step up our efforts further to stabilize and reverse the downward trend in the real estate market. Thank you.

　　Poster News Reporter:

　　New-quality productivity is an intrinsic requirement and a key focus for promoting high-quality development. Since the beginning of this year, regions across the country have been actively fostering new-quality productivity. Could you please tell us about the current status of its development? Thank you.

　　Sheng Laiyun:

　　Thank you for your question. Developing new-quality productivity is an intrinsic requirement for promoting high-quality development and represents a key area of focus. The central government attaches great importance to this and calls on localities to develop new-quality productivity in ways that are tailored to their specific conditions. Various regions are also driving technological innovation, fostering the integration of industrial and technological innovation, and upgrading and transforming traditional industries. Judging from the situation in the first half of the year, new-quality productivity continues to accelerate its cultivation and growth, and several aspects reflect the progress made in developing this new-quality productivity.

　　First, innovative achievements continue to emerge one after another. Localities are steadily increasing their investment in innovation, and China’s current R&D expenditure as a share of GDP has approached 2.7%, surpassing the EU average and nearing the OECD average. A growing number of innovative achievements are being realized. According to statistics from relevant authorities, from January to May, China’s applications for valid invention patents totaled nearly 5 million, representing a growth rate of 12.8%—a relatively rapid pace. Moreover, several innovative achievements have attracted widespread global attention. Since the beginning of this year, as everyone has noticed—from the DeepSeek large-scale model to the robotics marathon, from aerospace to autonomous driving—a series of technological innovations have drawn extensive attention both at home and abroad.

　　Second, emerging industries are thriving. As I just mentioned, in the first half of the year, the value-added of high-tech manufacturing enterprises above designated size grew by 9.5%. From January to May, the operating revenue of strategic emerging service enterprises above designated size increased by nearly 10%. These innovative achievements and industrial integrations are driving the development of the high-tech industry.

　　Third, the digital economy is rapidly developing. As we enter the digital era, artificial intelligence is accelerating its pace of development, and data has become a key factor of production. Localities are stepping up efforts to promote the digitalization of industries and the industrialization of digital technologies. The value-added of core digital economy industries now accounts for roughly 10% of GDP. Internationally speaking, this share is relatively high compared to that of developed countries.

　　Fourth, green development is enhancing quality and efficiency. Localities are fully implementing the new development philosophy and accelerating the advancement of green industries. The “new three”—including new-energy vehicles, lithium batteries, and solar energy—well-known to all of us, are all part of the green industry and continue to maintain a relatively high growth rate. For instance, new-energy vehicle sales grew by more than 30% in the first half of the year, while lithium-battery production surged by 53.3%. These new-energy industries continue to grow rapidly, truly demonstrating that lucid waters and lush mountains are invaluable assets.

　　Fifth, the pace of industrial transformation and upgrading has accelerated. Since the beginning of this year, localities have continued to implement upgrades and renovations of traditional industries. Particularly under the support of the nation’s “Two Major” and “Two New” policies, the pace of transformation has quickened, and everyone is actively aligning with “Internet Plus,” “AI Plus,” and “Digital Plus” initiatives to transform and enhance traditional industries.

　　From these five perspectives, new-quality productivity has been accelerating its development in the first half of the year. Thank you.

　　CNBC reporter:

　　Many analysts are concerned that consumption may slow down after June due to the trade-in subsidy policy. Could the National Bureau of Statistics share its outlook on consumption? What are the key factors driving consumption? Thank you.

　　Sheng Laiyun:

　　This is a very good question. Before we look ahead to the consumption outlook for the second half of the year, let me first give you an overview of China’s consumer market performance in the first half of the year. This will help you better understand the unique characteristics and supporting factors of China’s consumer market, and also provide a more intuitive grasp of the trends expected in the second half.

　　This year, the consumer market has delivered impressive performance. Among the many indicators just released, the quarter-on-quarter growth in retail sales has been a particularly noteworthy highlight. In the first half of the year, total retail sales of consumer goods saw accelerating year-on-year growth, and market activity continued to pick up—both of which provided strong support for GDP growth in the first half. In the first half of the year, total retail sales of consumer goods reached 24.55 trillion yuan, representing a 5% increase over the same period last year. Specifically, second-quarter growth came in at 5.4%, an acceleration of 0.8 percentage points from the first quarter, showing steady quarterly improvement. As a result, as just reported, consumption contributed 52% to economic growth in the first half of the year, making consumption a major bright spot in the first half.

　　There are several consumption trends in the first half of the year that deserve attention: First, service consumption is accelerating. In the first half of the year, retail sales of services rose by 5.3% year-on-year, while retail sales of goods grew by 5.1%. As a result, the share of service consumption in the overall consumption structure is on the rise. Second, the role of holiday consumption in driving growth has become stronger. During the first half of the year, we all felt firsthand the boost to consumption from the Spring Festival, May Day, and Dragon Boat Festival—traveling outside the home reached new highs. Moreover, spending on related cultural, sports, leisure, and transportation services all maintained double-digit growth. Third, growth in certain upgrade-oriented consumption categories has picked up pace. After meeting basic needs for food and clothing, people are placing greater emphasis on development- and enjoyment-oriented consumption. In the first half of the year, retail sales of sporting goods rose by 22.2% year-on-year, and retail sales of gold, silver, and jewelry increased by 11.3%. Fourth, green consumption is gradually becoming a new trend. In the first half of the year, consumption of new-energy vehicles, energy-efficient appliances, and smart home appliances continued to grow rapidly. Fifth, “Traveling in China” and “Shopping in China” remain increasingly popular—especially since the circle of visa-free travel partners has expanded, attracting more foreign tourists to China and boosting domestic consumption. During the May Day and Dragon Boat Festival holidays, the number of foreign visitors entering China under the visa-free policy increased by 72.7% and 59.4%, respectively, compared to the same period last year. Sixth, new consumption models and business formats are emerging one after another. As reported online, “self-satisfying consumption,” “emotional consumption,” and other new forms of personalized and diversified consumption are now gaining momentum.

　　So, based on these characteristics, we can see that in the first half of the year, China’s consumer market has become increasingly active, driven by a series of policies aimed at expanding domestic demand and boosting consumption, and its development trend is positive. This means that consumption will continue to be supported in the second half of the year. The factors influencing consumption in the first half—and the overall consumption trends—will likely persist into the second half. Moreover, consumption policies will continue to be strengthened. Just now, some of you expressed concerns about certain issues related to consumption subsidy policies; however, the relevant authorities have already announced that stimulus measures and subsidy programs for consumption will be rolled out one after another in the second half of the year, and local governments will also continue introducing complementary measures to further promote consumption. We are now at a critical stage of upgrading our consumption structure. Per capita GDP has remained stable above US$13,000 for two consecutive years. This stage represents a pivotal period for consumption upgrading, with vast potential in cultural tourism, medical care, health services, and elderly care consumption. Our country has a population of over 1.4 billion, giving us a clear and significant advantage in terms of market size. In addition, there is still a considerable gap between urban and rural areas, and our consumption levels—especially per capita levels—are still far behind those of some developed countries. This gap, however, represents substantial room for growth. China’s future consumption growth prospects are exceptionally promising, and our market space is enormous. Therefore, we remain highly optimistic about consumption in the second half of the year. Of course, we are fully aware that sustained and healthy consumption growth requires raising residents’ income levels and further improving the consumption environment. On these fronts, central government policies and measures introduced by relevant departments are steadily advancing. Localities must also continue to implement effectively the central government’s requirements for expanding domestic demand, follow the deployment outlined in the Consumption Enhancement Action Plan, further “stabilize employment and boost incomes,” improve the consumption environment, increase the supply of high-quality goods and services, and promote the continued healthy development of the consumer market. Thank you.

　　Reuters reporter:

　　In recent years, China’s economy has generally performed well in the first half of the year, but momentum has weakened in the second half. After an emergency package of measures was introduced at the end of September last year, growth rebounded sharply in the fourth quarter. Could you tell us how the National Bureau of Statistics views the outlook for the second half of this year? In addition to the measures announced in May, are there any other supportive initiatives planned?

　　Sheng Laiyun:

　　Thank you for your question. Everyone is very concerned about the outlook for China’s economy in the second half of the year. Recently, I’ve been reviewing relevant materials and noticed that many international institutions and investment banks have released outlook reports on the global economic forecast. Most of these institutions predict a slowdown in the global economy in the second half of the year; yet, remarkably, most of them have simultaneously raised their forecasts for China’s economic growth. This reflects the confidence that international institutions and investment banks have in China’s economic development. Looking ahead to the second half of the year, although the external environment still faces considerable uncertainties and there is significant pressure from internal structural adjustments, our comprehensive assessment suggests that China’s economy will continue to enjoy stable growth in the second half, supported by solid fundamentals.

　　First, the steady and progressive development trend and achievements of the economy in the first half of the year have laid a solid foundation for achieving the annual targets. In the first half of the year, China’s economy withstood various pressures and maintained stable growth, sustaining a development trajectory characterized by stability with progress and steady improvement. This fully demonstrates the resilience and strong adaptability of China’s economy, and this development trend is set to continue. GDP growth in the first half of the year has already reached 5.3%, providing a robust foundation for meeting the projected targets.

　　Second, over the years, the overarching trend and practice of high-quality development have fostered consensus, accumulated new driving forces, promoted economic rebalancing, and enhanced the economy’s capacity for sustainable development. Since the 18th National Congress of the Communist Party of China, our country has unswervingly advanced economic transformation and high-quality development, achieving historic accomplishments and undergoing historic changes in the Chinese economy—everyone has already reaped the benefits of high-quality development. Now, both domestic and international circumstances are compelling business entities to accelerate structural adjustments and shift their growth models, thereby further boosting economic transformation and high-quality development. Looking at some real-world factors, several leading indicators and positive signs are improving, reflecting the robust momentum of high-quality development. From a production perspective, after years of transformation, the service sector’s contribution to economic growth is on the rise. Among the three major sectors, the value-added of the service sector accounted for 59.1% of GDP in the first half of the year, contributing more than 60% to GDP growth. Judging from the leading indicators of recent months, the services sector’s business sentiment index has consistently remained in the expansion range above 50%, indicating strong growth momentum in the service sector and ensuring that this key sector—contributing significantly to economic growth—will continue to maintain favorable development trends. From a demand perspective, consumption serves as the “ballast” and main driving force behind economic growth. As I just mentioned, the consumer market showed signs of recovery in the first half of the year, and under the impetus of consumption policies in the second half, it will continue to maintain a healthy growth trajectory, further highlighting its role as a stabilizer for economic growth. In terms of exports, we have pursued diversified opening-up and built a diversified trade landscape, reducing our dependence on any single country to single-digit levels. In the first half of the year, China’s imports and exports grew by 2.9%, an achievement made despite the substantial external shocks faced in the second quarter, demonstrating the resilience of our trade sector. Looking at the development of new drivers, new growth engines continue to expand, with new industries, new business models, and new formats maintaining relatively rapid growth rates. Based on these factors, a comprehensive assessment suggests that China’s economy will have solid support for stable growth and high-quality development in the second half of the year.

　　Third, coordinated macroeconomic policies will provide a solid safeguard for the stable operation of the economy. Since the beginning of this year, China has implemented more proactive and effective macroeconomic policies, playing a crucial role in providing a floor for economic stability. In line with central directives, relevant authorities have recently accelerated the rollout of policies for the second half of the year, which will continue to serve as a key pillar supporting the stable functioning of the economy. At the same time, authorities have also indicated that China’s policy “toolbox” is rich and diverse, and they are strengthening their policy reserves, ready to introduce new measures in a timely manner in response to market changes.

　　Based on these supporting factors, we believe that China’s economy will continue to maintain a steady yet progressive development trend in the second half of the year—a trend that is also the rationale behind the optimistic outlook many international institutions and investment banks have for China’s economy. Thank you.

　　Reporter from the U.S. International Market News Agency:

　　Relevant authorities have recently taken action to address the issue of “involution,” including calling for the elimination of outdated production capacity in certain industries. What kind of impact will these measures have on the economic environment? Can these initiatives help China achieve its CPI targets and support future growth in PPI and industrial profits? Thank you.

　　Sheng Laiyun:

　　Thank you for your question. Regarding the recent intensification of “involutionary” competition in certain industries and among some enterprises, the Central Financial and Economic Commission held a meeting on July 1 and clearly stated: We must deepen the construction of a nationwide unified market, focusing on key challenges and sticking to laws and regulations in addressing enterprises’ low-price and disorderly competition. We should guide enterprises to enhance product quality and promote the orderly exit of outdated production capacity. Relevant authorities are currently formulating specific measures based on the spirit of this meeting to further strengthen the regulation and governance of market order. These policies and measures will help standardize market order, improve the balance between supply and demand, and promote a reasonable recovery in prices. They will also benefit enterprises by enhancing their profitability and boosting their vitality, thereby facilitating economic structural adjustment and high-quality development. Thank you.

　　Shou Xiaoli:

　　Keep asking questions. Due to time constraints, here are the last two questions.

　　Saudi Oriental TV reporter:

　　What measures might the government take to mitigate the impact of tariffs on China’s economy? Will the government resort to increasing spending or boosting domestic consumption?

　　Sheng Laiyun:

　　Thank you for your question. High tariffs certainly increase trade costs and are detrimental to economic and trade growth. Since the beginning of this year, in response to changes and pressures in the external environment, the Chinese government has been proactively adapting and taking initiative, placing greater emphasis on strengthening the domestic major circulation and stepping up efforts to implement more proactive macroeconomic policies aimed at expanding domestic demand and boosting consumption. We will remain steadfast in focusing on doing our own job well, using the stability and certainty of China’s economy to counter external uncertainties.

　　In strengthening the domestic large-cycle and promoting stable economic growth, we have adopted a comprehensive set of measures. On the one hand, we continue to step up fiscal policy support. As I mentioned earlier, this year’s fiscal policies are even more robust, providing stronger support for the trade-in program for consumer goods and stepping up efforts to assist industrial enterprises in upgrading and renovating their equipment. These policies have played a positive role in driving economic performance. The policies aimed at expanding domestic demand have been both proactive and effective; in particular, consumption has been the main driver of economic growth in the first half of the year. On the other hand, we are actively promoting high-level opening-up, expanding our “circle of friends,” advancing trade diversification, and reducing our reliance on any single market, thereby mitigating associated risks. Judging from these measures, the results have been quite evident. We are confident that as these policies are further implemented, their effects in boosting consumption, stabilizing investment, and expanding foreign trade will become even more pronounced, continuing to contribute positively to fostering stable economic development. Thank you.

　　Shou Xiaoli:

　　The last question.

　　First Finance reporter:

　　In June, the CPI year-on-year ended its previous four-month streak of negative growth. Among them, the core CPI—excluding food and energy prices—continued to rebound, reaching a new high in nearly 14 months. What’s your outlook on the inflation situation for the second half of the year? Thank you.

　　Sheng Laiyun:

　　Thank you. The issue of prices is closely linked to both economic growth and everyone’s consumption behavior, and it’s a topic that everyone is highly concerned about. Now, let me share a few points on the issue of prices.

　　First, the trend in residents’ consumer prices—also known as the CPI—in June did indeed show positive changes, a result of multiple factors coming into play. In June, the CPI rose by 0.1% year-on-year, marking the first rebound after several consecutive months of decline at -0.1%. The core CPI, excluding volatile food and energy prices, rose by 0.7% year-on-year, reaching a new high since last year. This indicates that, under the combined effect of measures aimed at expanding domestic demand and promoting a reasonable recovery in prices, the price market has begun to show positive signs. The rebound in the June CPI was driven, first and foremost, by the recovery in industrial consumer goods prices, supported by the “two new” policies. Consumer goods benefiting from the trade-in programs—such as household appliances and office supplies—experienced price increases in June. In addition, certain developments in the international market also played a role in this rebound. In June, oil prices rose, and the increase in gasoline prices helped ease downward pressure on the CPI from falling energy prices. Meanwhile, prices of non-ferrous metals on the international market, especially precious metals, climbed, leading to a noticeable rise in domestic platinum jewelry prices, which also provided support for halting the CPI’s decline and helping it turn upward. Overall, these factors contributed to an increase of nearly 0.2 percentage points in the month-on-month CPI growth rate. At the same time, June saw unusually high temperatures and frequent rainfall, which somewhat affected the supply of certain vegetables. Additionally, prices of some seafood, aquatic products, and beef also showed a temporary rebound. These factors collectively supported the shift of the June CPI from negative to positive territory.

　　Second, the recent sustained low price levels exhibit both structural and cyclical characteristics. This feature was particularly evident in the first half of the year. In the first half, consumer prices fell, with food and energy prices having the most significant impact. Specifically, food prices declined by 0.9% year-on-year, while energy prices dropped by 3.2%. Together, these two factors pulled down the CPI by approximately 0.4 percentage points. Excluding food and energy prices, the core CPI rose by 0.4% year-on-year, with a further increase of 0.7% in June—clearly reflecting structural characteristics. At the same time, this trend also displays cyclical features. The current sustained low price levels are linked both to changes in the domestic and global macroeconomic environment and to China’s stage of development. China is at a critical juncture of transformation and upgrading, during which some traditional growth drivers are undergoing adjustment. As a result, prices of related products—such as steel, cement, and construction materials that are closely tied to the real estate sector—are continuously adjusting downward. Meanwhile, new growth drivers are emerging, and prices of high-tech products and high-tech manufacturing goods associated with these new drivers are on the rise. Since the growth of these new drivers has yet to fully offset the downward pressure from the adjustment of traditional drivers, overall prices continue to adjust—a process that is also necessary for the market clearance of certain industries. Moreover, this situation is also influenced by changes in the external environment at this stage, which have intensified downward pressure on prices.

　　Third, regarding the price trend in the second half of the year that you’re concerned about, our overall assessment is that prices will experience a mild rebound from their current low levels. There are several supporting factors: First, the economy continues to maintain a stable and positive momentum, with total demand steadily expanding, laying a solid macroeconomic foundation for price stability. Second, relevant policies—especially those aimed at boosting domestic demand—are continuing to show effectiveness, which will stimulate related consumer demand and strongly support the stable recovery of consumer goods prices. Third, recent central meetings have called for the regulation of enterprises’ low-price, disorderly competition in accordance with laws and regulations, which will help standardize market order and improve the business environment. Recently, industry associations for photovoltaics, cement, and automobiles have each taken self-regulatory measures, which will have a positive impact on prices in these sectors. Fourth, holiday effects are still evident and will help stabilize or even push up prices for related services. The second half of the year includes a series of holidays such as summer vacation, National Day, and Mid-Autumn Festival; as I mentioned earlier, the holiday effect remains quite pronounced. Fifth, from a technical perspective, in the second half of the year, both the CPI and PPI will see a weakening of carryover effects, meaning the downward pressure they exert on CPI and PPI will gradually diminish. From all these angles, we believe that prices will maintain a mild rebound from their current low levels. Thank you.

　　Shou Xiaoli:

　　Thank you, Deputy Director Sheng Laiyun, and thank you to all the journalists for your participation. That’s all for today’s press conference—goodbye, everyone!