Opinion

1. Strengthening the domestic circulation as growth engine

In the first half of the year, domestic demand contributed 68.8 percent to GDP growth, with final consumption expenditure accounting for 52 percent, retaining its role as the primary growth driver. This reflects the sustained impact of consumption-boosting initiatives as part of policies to stimulate domestic demand. Strengthening domestic economic circulation provides momentum for continued consumption growth in the second half of the year.

2. Vast potential for green finance development

China unveiled a catalogue of green finance-supported projects as part of efforts to give play the leverage effect of green finance and upgrade its standards and institutional foundations. The 2025 edition of the catalogue was jointly issued by the People's Bank of China, the National Financial Regulatory Administration and the China Securities Regulatory Commission, to strengthen green finance's role in driving China's green transition in economic and social development and advancing the "Beautiful China" initiative.

Policy

1. China has rolled out new measures to encourage reinvestment by foreign-funded enterprises, according to a circular jointly released by seven government bodies, including the National Development and Reform Commission. These efforts aim to help foreign-funded companies deepen their presence and achieve long-term development in the Chinese market.

2. China has issued new ethical guidelines for automated driving technology, emphasizing that the priority for automated systems must be the protection of human life, as the technology advances toward commercialization, the Ministry of Science and Technology said on July 23.

3. To promote the development of the Hainan Free Trade Port, the Ministry of Finance, the General Administration of Customs, and the State Taxation Administration jointly issued circulars clarifying policies on island-wide independent customs operation, which will be launched on December 18, 2025. These include taxation policies on goods and items imported and exported through the "front line" between Hainan Free Trade Port and other countries and regions outside the customs territory of the People's Republic of China, and through the "second line" established between Hainan Free Trade Port and other areas within the customs territory of the People's Republic of China, and circulation in the island. A catalogue of taxable imported goods has also been issued.

Data

1. The retail sales of consumer goods in China grew 5.5 percent on average annually over the past four years, with the sales expected to top RMB 50 trillion (about USD 7 trillion) in 2025, Chinese Minister of Commerce said on July 18. Service consumption in China has maintained rapid growth, with the share of household service consumption expenditure rising by 3.5 percentage points to 46.1 percent.

2. In the first half of the year, the value-added industrial enterprises above the designated size increased by 6.4 percent year-on-year, demonstrating strong resilience following a solid start in the first quarter. The value-added manufacturing sector accounted for 25.7 percent of GDP, remaining largely stable.

3. In the first half of the year, China's telecommunications business volume grew by 9.3 percent year-on-year, with total telecommunications revenue reaching RMB 905.5 billion. By the end of June, the total number of 5G base stations reached 4.55 million, and 5G mobile phone users exceeded 1.118 billion, with a penetration rate of over 79 percent. The pilot deployment of 10-gigabit optical network in the first batch of 168 communities, factories, and industrial parks has progressed smoothly.

4. The hydropower project in the lower reaches of the Yarlung Zangbo River officially commenced construction on July 19. Located in Nyingchi City, southwest China's Xizang Autonomous Region, the project involves the construction of five cascade power stations with a total investment of approximately RMB 1.2 trillion.

5. In the first six months of 2025, 30,014 new foreign-invested enterprises were established on the Chinese mainland, representing year-on-year growth of 11.7 percent. Foreign direct investment (FDI) in the Chinese mainland totaled RMB 423.23 billion in actual use.

6. The China Shenzhen Unicorn Enterprise Conference was held from July 17 to 18 in Shenzhen. China had 372 unicorn companies worth more than a combined USD 1.2 trillion at the end of last year, highlighting the vitality of the country's new quality productive forces.

7. The 2025 China International Supply Chain Expo, running from July 16-20 in Beijing, has drawn more than 600 exhibitors. Over 6,000 cooperation agreements and intentions were signed or reached during the event. Over its three editions, the proportion of overseas exhibitors has risen steadily, increasing from 26 percent in the first edition to 32 percent in the second, and further to 35 percent this year.

8. Latest customs data showed that in the first half of the year, China's western regions continued to optimize their foreign trade structure, with total import and export value reaching RMB 2.12 trillion, a year-on-year increase of 10.4 percent, setting a new historical record for the same period and emerging as a new highlight in China's opening-up efforts.

9. The civil aviation industry achieved a total transport turnover of 78.35 billion ton-kilometers, carried 370 million passenger trips, and handled 4.784 million tons of cargo and mail in the first half of the year, representing year-on-year growth of 11.4 percent, 6 percent, and 14.6 percent, respectively. Transport scale reached a new high, according to the Civil Aviation Administration of China.

10. Changqing Oilfield, China's largest oil-and-gas field, on July 23 announced that its daily shale oil output had totaled 10,006 tonnes -- a milestone in China's shale oil development.

(Source: Economic Daily)