(Yicai) Aug. 13 -- The economy of China's southwestern Xizang Autonomous Region expanded at a 7.2 percent clip in the first half of this year, driven by the construction of several megaprojects in the region, including the world's largest hydropower dam.

Xizang's gross domestic product was CNY138.3 billion (USD19.3 billion) in the six months ended June 30, according to the local statistics bureau. The region has led China in GDP growth rate since 2023.

China State Railway Group recently set up Xinjiang-Tibet Railway to build a rail link connecting Hotan in Xinjiang Uygur Autonomous Region with Shigatse and Lhasa in Xizang. In addition, the Sichuan–Tibet railroad will likely be completed around 2030, while work on the CNY1.2 trillion (USD167.1 billion) mega dam in the lower reaches of the Yarlung Zangbo River began on July 19.

The wave of infrastructure growth is transformative, opening Xizang to the rest of the country, securing energy supplies, and stimulating upstream sectors such as construction materials and equipment manufacturing, while also lifting the national economy, Chen Yao, vice president of the China Regional Economics Association, told Yicai.

Xizang's fixed-asset investment surged 25 percent in the first six months of this year, maintaining double-digit growth after rising 35 percent in 2023, excluding the Sichuan–Tibet Railway's Ya'an–Nyingchi section, and 19.6 percent last year. The number of projects with budgets of CNY50 million (USD7 million) or more jumped 40 percent last year from 2023.

However, Chen stressed that Xizang's fragile ecosystems must be protected. "Under the principle of large-scale conservation, the region should cultivate suited, environmentally friendly industries," he said, adding that improved basic conditions could make it an ideal site for green-tech sectors, with data centers powered entirely by renewable energy.

Editor: Martin Kadiev