China's economy experienced a robust growth of 5.3 percent year-on-year in the first half of 2025, surpassing various forecasts. Notably, the second quarter recorded a growth rate of 5.2 percent, reinforcing the resilience of the Chinese economy amid prevailing global trade and economic instabilities.

This remarkable growth trajectory can be attributed to three key advantages. Firstly, China's extensive and resilient industrial chain plays a crucial role. Despite global supply chain disruptions, the country's ability to maintain stability across its diverse industrial activities, which encompass 41 major, 207 mid-range, and 666 minor industrial categories, equips the economy with unparalleled resilience.

Secondly, the digitalization of traditional industries has led to significant efficiency gains. While some conventional economic indicators have shown a slowdown due to structural transformations and technological advancements, productivity gains facilitated by digital technologies often go unrecognized. These improvements manifest in cost reductions, enhanced efficiency, and the emergence of new growth opportunities from the digital economy.

Thirdly, the ongoing optimization and upgrading of the economic structure marks a profound transformation within China's economy. This shift is enhancing industries' capabilities at a rapid pace, potentially positioning China ahead of the United States in the transition towards a fully digital economy, as its digital transformation and industrial upgrades exceed market expectations.

Key economic indicators from the first half of 2025 indicate a shift towards higher-quality growth. Domestic consumption emerged as a foundational growth driver, contributing 52 percent to GDP growth as the services sector achieved robust sales growth of 5.3 percent, outpacing retail goods sales at 5.1 percent. Government initiatives, like trade-in programs, are encouraging consumers to invest in energy-efficient and smart products.

Additionally, the emergence of new industries and technologies continues to accelerate. High-tech manufacturing firms reported a 9.5 percent year-on-year expansion, exceeding overall industrial growth by a notable 3.1 percentage points. Strategic service sectors also exhibited strong performance, growing nearly 10 percent in the initial five months of the year.

The rise of high-end services highlights China's structural evolution towards a high-quality growth model. The expansion of sectors such as creative design, lab-to-market innovation, and database management indicates a shift towards greater structural maturity and the enhancement of value-added economic contributions.

However, this transformation does not come without challenges. Industries and individuals undergoing these structural changes face significant difficulties, yet this transition also creates new opportunities, injecting lasting vitality into the economy.

China is committed to stabilizing markets, employment, and business expectations, with a strategic roadmap aimed at sustaining growth momentum amidst external uncertainties. Key policy measures include supporting enterprises, bolstering employment, boosting consumption, and enhancing market confidence against global economic headwinds.

Looking ahead, the third quarter, traditionally a peak period for consumer spending, is poised for stronger-than-expected GDP growth. If the current growth momentum is sustained, reaching the full-year growth target of approximately 5 percent is likely. Consistently, China is poised to act as a stabilizing force amid ongoing global geopolitical and economic challenges.