China's Tax Relief Exceeds 1.9 Trillion Yuan in H1 to Boost High-Tech and Manufacturing Growth

In the first half of the year, China delivered over 1.9 trillion yuan in tax cuts, fee reductions, and refunds targeted at tech innovation and manufacturing, according to data from the State Taxation Administration reported by CCTV. Tax invoice data highlights accelerating digital integration and structural upgrades across industries. Sales revenues in emerging sectors like smart vehicle equipment, drones, and robotics saw rapid growth, while enterprise purchases of R&D equipment and services rose by more than 10%.

Tax policy relief exceeding 1.9 trillion yuan reflects targeted fiscal support aimed at fostering high-tech industries and advanced manufacturing. Rising enterprise expenditure on R&D and digital technology indicates that Chinese companies are actively reinvesting in innovation, driving a broader structural transition toward high-quality development and new productive forces.

China delivered over 1.9 trillion yuan in tax cuts, fee reductions, and tax refunds during the first half of the year, specifically targeting technological innovation and manufacturing sector development, according to data from the State Taxation Administration reported by CCTV. The tax relief measures form part of broader national efforts to support advanced manufacturing and foster new industrial growth drivers. Tax invoice data collected by authorities shows a deepening integration between digital technologies and traditional industrial sectors over the six-month period. Sales revenue in core digital economy industries grew by 8.7% year-on-year, pointing to accelerated progress in digital industrialization. At the same time, nationwide enterprise procurement of digital technology expanded by 8.3% year-on-year, demonstrating sustained momentum in enterprise-level digital upgrades. Traditional manufacturing segments also posted stable revenue gains alongside industrial modernisations. Sales revenues in food manufacturing, apparel, and papermaking increased by 11.6%, 9.2%, and 8.9% year-on-year, respectively, during the first half of the year. Emerging high-tech sectors posted significantly higher growth rates. Sales revenues in smart vehicle equipment registered a 43% year-on-year increase, while the unmanned aerial vehicle sector expanded by 36.2%, and the robotics industry grew by 27.3%. The tax invoice statistics further demonstrate increased enterprise expenditure on innovation inputs and research output. In the first half of the year, national enterprise purchases of research and development equipment and specialized research services grew by over 10% year-on-year. On the output side, sales revenues across scientific research and technology services, as well as patent-intensive industries, sustained double-digit growth year-on-year. The combination of targeted tax incentives and rising corporate research expenditure reflects ongoing structural shifts within China's industrial base as companies continue to direct capital toward technology upgrades and high-value manufacturing capabilities.