(Yicai) July 28 -- Nearly half of China’s provincial-level regions, or 15 of the 31, grew their gross domestic product at a faster clip than the national average of 4.7 percent in the first half of the year.

At 6.3 percent, Xizang Autonomous Region was the fastest-growing regional economy in the six months ended June 30, followed by Zhejiang at 5.7 percent and Shandong, Shanghai, and Anhui at 5.6 percent each.

Guangdong remained the largest provincial economy, with a GDP of CNY7.23 trillion (USD1.07 trillion), followed by Jiangsu with CNY7.04 trillion, both exceeding CNY7 trillion for the first time. At CNY2.74 trillion, Anhui came in ahead of Hunan at just over CNY2.7 trillion to re-enter the top 10 after a three-year absence. 

China's GDP rose 4.7 percent to CNY69.57 trillion (USD10.28 trillion) in the first half from a year earlier, keeping growth aligned with the country's full-year target, according to the National Bureau of Statistics. In March, the government set a goal of expanding GDP by 4.5 percent to 5 percent in 2026. It increased 5 percent in the first quarter and 4.3 percent in the second.

Among the 10 largest economies, Jiangsu, Shandong, Zhejiang, Sichuan, Henan, Hubei, Shanghai, and Anhui all had growth faster than the national average, while the economies of three provinces and one city in the Yangtze River Delta region expanded by more than 5 percent, with high-tech manufacturing growth generally reaching double-digits.

Anhui was one of the biggest gainers, driven by rapid industrial upgrading. Output at its industrial enterprises above a designated size jumped 12.4 percent, while high-tech manufacturing surged nearly 45 percent. The province ranked first for car production, at 1.69 million vehicles. By contrast, output at similar-sized industrial firms in Hunan rose only 2.6 percent. Thanks to the rapid growth of high-tech industries, Jiangxi overtook Shaanxi and Guizhou surpassed Shanxi.

China’s foreign trade remained a major growth engine in the first half. Imports and exports of goods jumped 17 percent to CNY25.47 trillion, topping CNY25 trillion for the first time. Guangdong and Jiangsu led, supported by electronic information and high-end manufacturing, while Henan's trade jumped 26 percent to a record high.

The artificial intelligence supply chain has become an increasingly important export driver. AI-related exports accounted for 22 percent of the total, contributing nearly half of the country’s export growth, said Luo Zhiheng, chief economist at Yuekai Securities.

The services sector also provided much economic momentum. Its value added climbed 5.2 percent in the period, accounting for 59.5 percent of GDP and contributing just over two-thirds of growth. Service industries in major economic hubs such as Beijing and Shanghai played a particularly important role in supporting the expansion.

Regional disparities persisted, however, with Northeast China’s three provinces reporting slower growth than the national average. Some resource-dependent provinces still face ongoing challenges in transitioning away from traditional industries and developing new growth drivers.

Looking at the second half of the year, analysts said local governments are likely to focus on expanding domestic demand, maintaining foreign trade momentum, and accelerating industrial upgrading as key priorities for sustaining economic growth.

Editor: Martin Kadiev