China Signals Faster Economic Driver Transition Amid Policy Expansion

China’s leadership is accelerating the transition from traditional growth drivers to high-tech economic engines, according to coverage of the July 30 Politburo meeting published by People's Daily. Beijing pledged to strengthen counter-cyclical adjustments and introduce practical incremental policies alongside existing measures. Official figures show first-half GDP grew 4.7% year-on-year to 69.6 trillion yuan, with high-tech manufacturing and digital sectors providing over 40% of economic expansion. Key developments include high-tech industrial output rising 13.3% and artificial intelligence adoption in key industries crossing 80%.

As external complexity increases, China is relying heavily on high-end manufacturing and the digital economy to sustain growth. The rising share of manufacturing and rapid expansion of high-tech sectors demonstrate structural progress, indicating that Beijing views technological upgrading as vital to both short-term stabilization and long-term economic resilience.

China is stepping up policy support to accelerate the transformation of its economic growth engines, following a key decision-making meeting of the Communist Party’s Central Politburo, according to reportage by People's Daily. During its July 30 meeting assessing economic performance, top leadership noted that China’s growth demonstrated a trend of momentum shifting toward new drivers and structural optimization. Compared to language from its April session, the Politburo newly emphasized accelerating the transition of growth drivers, maximizing the efficiency of existing policies, planning practical incremental measures, and strengthening counter-cyclical adjustments. Official data from the National Bureau of Statistics highlights the structural adjustments underway. China’s gross domestic product reached 69.6 trillion yuan in the first half of the year, expanding 4.7% year-on-year. The year-on-year GDP increment stood at 3.6 trillion yuan, marking the largest first-half expansion in five years. Beyond headline growth, structural metrics showed shifting dynamics. Manufacturing value-added reached 26.2% of GDP, while new energy vehicle retail penetration exceeded 60% for three consecutive months. Emerging drivers—comprising high-end manufacturing, the digital economy, and modern services—contributed over 40% to overall first-half economic growth. Speaking to Chinese media, Sheng Lei, Deputy Director of the National Information Center under the National Development and Reform Commission, noted that high-tech manufacturing value-added above designated size grew 13.3% year-on-year in the first half, outpacing overall industrial growth by 3.9 percentage points. Equipment manufacturing expanded by 9.3%. Sector-specific figures show double-digit gains in key technology industries. Integrated circuit manufacturing and intelligent onboard device production both recorded growth rates exceeding 30%. National integrated circuit output totaled 279.8 billion units in the first half, averaging over 1.5 billion units per day. Furthermore, the overall adoption rate of artificial intelligence in priority industrial sectors exceeded 80%. Sheng emphasized that the transition represents a systemic overhaul rather than a simple substitution of old sectors for new ones. Traditional industries are adopting digital and intelligent upgrades while emerging sectors push for core technological breakthroughs. In response to the rapid rise of smart technologies, the Politburo also called for improving the national AI governance framework, balancing innovation with security.