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China’s first-half economic performance signals stronger momentum, higher-quality growth 

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By Zhong Yin, People’s Daily

In the first half of 2026, China’s GDP grew by 4.7 percent year-on-year. Summer grain output exceeded 150 million tons for the first time, while total imports and exports surpassed 25 trillion yuan ($3.69 trillion) — also a record for the period.

Despite mounting external uncertainties, the Chinese economy has maintained overall stability and continued its shift toward more innovation-driven and higher-quality growth, demonstrating remarkable resilience and vitality.

Global economic growth has slowed broadly this year. The International Monetary Fund (IMF) recently revised its 2026 global growth forecast down to 3.0 percent, while raising its forecast for China’s full-year economic growth by 0.2 percentage points.

Why has China continued to stand out in a challenging global environment? The answer can be summed up in four key words: stability, innovation, vitality, and integration.

Stability: Providing certainty in an uncertain global economy

In the first five months of this year, China exported 187 high-value-added liquid cargo vessels worth more than 64.3 billion yuan, an increase of 188.8 percent year on year.

During the first half of the year, China’s automobile exports surpassed 5 million units for the first time, with exports of electric vehicles soaring 68.7 percent.

The strong global performance of Chinese-built ships and automobiles reflects the resilience and competitiveness of the broader Chinese economy.

China’s economic expansion in the first half of 2026 was the largest for the same period in the past five years. From the rapid growth of integrated circuit exports to the expanding digital trade network of small commodities in Yiwu, Zhejiang province, China’s ability to respond quickly to shifting demand, compete in high-end industries, and expand into emerging markets is underpinned by its complete industrial system.

Some economic indicators have experienced short-term fluctuations, reflecting both external challenges and domestic structural adjustments. But such fluctuations do not change the long-term trajectory of China’s economic development.

Innovation: Building new engines of growth

Two recent breakthroughs illustrate this momentum.

The victory of Chongqing-based motorcycle maker ZXMOTO in an international superbike championship ended the long-standing dominance of European and Japanese brands, highlighting not only the transformation of Chongqing’s motorcycle supply chain but also the upgrading of China’s traditional manufacturing industries.

The introduction of the “Tau Law” by Chinese tech giant Huawei, which advocates “time scaling” instead of conventional geometric scaling in chip design, has also drawn widespread attention. The company has now brought 381 chip models into mass production, underscoring the rapid development of China’s emerging industries.

This year has also witnessed major scientific and technological breakthroughs. China’s supercomputer LineShine became the world’s fastest supercomputer, while the Long March-10B carrier rocket achieved the world’s first offshore recovery using a sea-based net system. 

As technological innovation continues to drive industrial upgrading, new quality productive forces are taking shape at a faster pace.

Preliminary estimates indicate that new growth drivers, including high-end manufacturing, the digital economy, and modern services, contributed more than 40 percent to China’s economic growth in the first half of the year, highlighting the economy’s increasingly innovation-driven and high-quality development.

Vitality: Unlocking new opportunities through a vast market

As of June 20, this year’s consumer goods trade-in programs had generated more than 1 trillion yuan in sales, benefiting 136 million consumers.

The demand of more than 1.4 billion people for a better life continues to unleash the enormous potential of China’s vast consumer market.

Artificial intelligence is empowering industries across the board, while grassroots cultural events such as village football leagues and village gala performances are revitalizing rural communities. New demand is giving rise to new supply, while new supply is creating fresh demand, generating a virtuous cycle that sustains economic dynamism.

Some international business leaders have described China as “the world’s toughest gym,” where companies that succeed become more competitive globally. Others call China “the most reliable partner.” In May, China granted zero-tariff treatment on all tariff lines to the 53 African countries with which it has diplomatic relations. As a result, imports of aquatic products and textile raw materials from Africa recorded double-digit year-on-year growth in May and June.

By pursuing mutually beneficial cooperation and promoting inclusive development, China continues to demonstrate through concrete actions that partnering with China means embracing opportunities; believing in China means being optimistic about tomorrow; and investing in China means investing in the future.

Integration: Connecting innovation with development

This year, a number of Chinese hard-tech companies, including Unitree Robotics, successfully completed domestic listing reviews, while more technology enterprises with core innovations accelerated their entry into the capital market. Investment in physical assets and investment in people are becoming more closely connected, while the innovation, industrial, capital, and talent chains are increasingly integrated.

China also launched the Xiangshan open-source processor system and the Ruyi native operating system, both of which are being jointly maintained and continuously improved by developers worldwide. Since beginning trial operation, the High Energy Photon Source has received more than 1,700 experiment applications from research teams at home and abroad. China is steadily evolving from a technology follower into a global source of innovation.

The country’s reform agenda continues to emphasize deeper integration across multiple dimensions: promoting closer collaboration among enterprises, universities, research institutes and end users; advancing the integrated development of culture, commerce, tourism, sports and exhibitions; fostering integrated urban-rural development; and accelerating the building of a unified national market.

This focus on integration serves not only as a key to deeper reform and innovation but also opens up broader prospects for high-quality development.

Anchored to its development goals and building on existing momentum, China’s economy is moving steadily toward long-term, high-quality development, with a promising future ahead.

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Inside China’s first quantum-powered demonstration substation 

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By Xu Jing, People’s Daily

Quantum technology is beginning to transform the way China’s power grids operate. At the 220-kilovolt Houdian Quantum Application Demonstration Substation in Hefei, east China’s Anhui province, a suite of advanced quantum technologies is now in use. These include diamond-based quantum sensing materials to monitor current fluctuations, quantum-dot gas sensors to detect potential cable fire hazards and partial discharge faults inside switchgear, and other innovations that strengthen the intelligence, safety, and efficiency of grid operations.

Commissioned in November 2024, the facility is China’s first demonstration substation dedicated to the systematic application of quantum technologies. It has deployed 85 independently developed quantum devices across 18 categories, covering quantum sensing, quantum communication, and quantum computing. 

The project represents a pioneering effort to integrate quantum technologies into power grid engineering, offering a new technological solution to the challenges faced by conventional power grids while supporting the development of a new-type power system.

The substation also represents a new generation of fully unattended intelligent substations.

“We have replaced many manual inspection tasks with high-precision quantum sensing equipment,” said Tian Teng, a young engineer at the digitalization institute of the electric power research institute under State Grid Anhui Electric Power Co., Ltd. “The new system can identify and diagnose equipment defects much faster, reducing both inspection costs and operating expenses.”

Inside the high-voltage switchgear hall, rows of power equipment operated steadily. Standing beside an out-of-service switchgear cabinet, Tian pointed to a small device mounted on its side.

“This is a quantum-dot multi-parameter sensor,” he explained. “It continuously monitors the cabinet’s internal environment and detects signals associated with partial electrical discharge, enabling us to assess the condition of the switchgear.”

He then pointed to another compact device attached to a cable beneath the cabinet.

“This is a distribution network current sensor. It monitors line loading in real time and can quickly and accurately locate faults along the transmission line.”

Quantum technologies are embedded throughout the facility — not just in these compact sensing devices.

Quantum technologies are embedded throughout the facility — not just in these compact sensing devices. A quantum lidar system installed on the rooftop monitors atmospheric particles and cloud conditions within a 15-kilometer radius, providing early warnings of weather-related risks.  Quantum attitude sensors mounted on transmission towers can detect magnetic field changes as small as 1/10,000 of the Earth’s magnetic field, enabling highly accurate monitoring of tower alignment. 

Besides, quantum encryption equipment supports both fiber-based quantum secure communications and “5G + quantum” encrypted communications, significantly enhancing cybersecurity across the power network.

The innovation extends beyond physical equipment. The substation has adopted a quantum computing-based approach for power flow analysis, which has been validated using the topology of a real-world power grid on Origin Wukong, China’s domestically developed quantum computer.

“This breakthrough provides an entirely new technical approach for large-scale power grid simulation,” Tian said. “It is expected to further improve the real-time analytical and computing capabilities of power systems.”

Why did China build this quantum-powered substation?

According to Tian, conventional power grids are increasingly facing three major challenges as renewable energy and power-electronics-based equipment become increasingly widespread: limited accuracy in equipment condition monitoring and delayed response; insufficient security for data transmission and control instructions; and the computational limitations of conventional computers when making rapid decisions for increasingly complex grid operations.

Developing a new-type power grid supported by quantum technologies has become an inevitable choice, he said.

Developing the necessary equipment, however, was far from straightforward.

There were no domestic precedents, no established standards and no mature technical solutions to follow, said Zhao Long, head of the power quantum sensing laboratory at the electric power research institute under State Grid Anhui Electric Power Co., Ltd.

“The biggest challenge came when supplies of high-quality diamond sensing materials were cut off by overseas suppliers, bringing the project close to a standstill,” he added.

The team eventually partnered with domestic materials researchers to develop customized alternatives. After repeated rounds of experimentation and testing, they achieved a breakthrough.

New engineering challenges soon emerged, including electromagnetic interference and adapting laboratory technologies to real operating conditions.

“For several consecutive months, we spent our days at the substation collecting data and tuning system parameters, and our nights back in the laboratory refining algorithms and improving packaging and shielding designs,” Zhao recalled.

“When the quantum current transformer finally displayed accurate readings on the monitoring screen, everyone on the team burst into applause. We had successfully bridged the ‘last mile’ from laboratory research to real-world engineering.”

According to project estimates, the application of quantum technologies enables the Houdian demonstration substation to reduce annual electricity measurement errors by more than 500,000 kilowatt-hours, while significantly improving the reliability and economic efficiency of grid operations.

Several quantum technologies first demonstrated at the substation have since been deployed elsewhere across Anhui province and are now being introduced to more regions across China.

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Chinese robots expand global reach through diverse applications 

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By Ouyang Jie, Liu Junguo, People’s Daily

From factories and power plants to warehouses and emergency response sites, Chinese-made robots are increasingly being deployed across a wide range of applications worldwide. 

This expansion reflects not only the rapid growth of China’s robotics industry but also the ability of Chinese companies to develop products tailored to diverse market needs, improve service capabilities, and build localized operations overseas. 

At the assembly workshop of Pudu Robotics, a Chinese service robotics manufacturer located in Jianhu county, east China’s Jiangsu province, five production lines were running at full capacity for 10 hours. 

Workers at assembly stations were installing new batches of lidar modules into robot bodies. The company’s production schedule has already fully booked through 2027, with factory production plans significantly tighter than last year.

Founded in 2016, Pudu Robotics has focused on the global commercial service robot market. It has shipped more than 130,000 units and served over 50,000 end customers worldwide. 

Since the beginning of this year, the company’s exports have already exceeded the total volume of the previous year, with products sold to 85 countries and regions. Its cleaning robots, in particular, have maintained year-on-year export growth of more than 100 percent for consecutive years, accounting for 29 percent of the global commercial cleaning robot market.

Pudu Robotics is just one example of Chinese intelligent robot companies expanding into overseas markets. According to customs data from Shenzhen, south China’s Guangdong province, exports of various types of robots from Shenzhen reached 6.94 billion yuan ($1.03 billion) in the first half of this year, representing a tenfold increase year-on-year. These products were shipped to more than 110 countries and regions.

Strong technological capabilities are at the core of the global competitiveness of Chinese manufacturing.

“Our quadruped robots have officially started operations at a nuclear power plant in Switzerland, carrying out frequent and routine autonomous inspections in high-risk areas,” said Yao Hengyan, assistant general manager of DEEP Robotics in Hangzhou, east China’s Zhejiang province.

The robot can climb slopes as steep as 45 degrees, navigate narrow spaces between equipment and access areas that are difficult for humans to reach. Equipped with thermal imaging and acoustic sensors, it can accurately detect potential hazards such as leaks, abnormal temperatures, and unusual equipment noises. 

Inspection data is uploaded in real time to a digital management platform, which can automatically issue alerts and initiate responses once anomalies are detected.

Besides, the quadruped robots of the company are also used for factory security and underground pipeline inspection in Switzerland.

A diverse product portfolio has enabled Chinese robots to adapt to a broad range of global application scenarios.

Pudu Robotics has divided the market into 16 major industries and more than 800 categories of specific applications and tasks based on customer needs, said Zhang Tao, founder and CEO of the company. The company has continuously optimized the overall performance of its products to ensure they are “functional, user-friendly, and durable” in complex environments.

It has established four major product lines covering delivery, cleaning, industrial, and general-purpose embodied intelligence robots, with applications spanning multiple sectors, including manufacturing and warehousing logistics.

The successful deployment of DEEP Robotics’ quadruped robots at a Swiss nuclear power plant, where safety standards are extremely demanding, demonstrates the stability and reliability of China-made robots, Yao said. 

The company has reached an agreement with its Swiss client to expand cooperation, and its robots, which can adapt to complex terrain and extreme weather conditions, have already been deployed in energy, industrial, and emergency response scenarios in various parts of the world.

As they continue to explore overseas markets, many Chinese robotics companies are shifting from simply exporting products to building localized brands and service networks.

Competition in China’s service robot sector has moved beyond price-performance advantages and entered a new stage where quality, brand recognition, and service capabilities are equally important, Zhang said. Customers are looking for not just a machine, but a comprehensive solution that can operate reliably over the long term.

To meet these needs, Pudu Robotics has established local offices and service centers in major global markets and built a cooperation network involving more than 1,000 distributors. The network provides partners with full-process support, including pre-sales consultation, sales assistance, deployment, after-sales maintenance, and rapid spare parts response, helping customers overcome concerns about adopting complex technologies.

The current penetration of robots remains relatively low, leaving broad room for future growth, Zhang said. As robots become increasingly integrated into various industries, different application scenarios will require different types of robots and capabilities. The company hopes to develop a unified “intelligent brain” for robots that can empower various products in fields such as delivery, cleaning, and industrial applications.

Pudu Robotics will continue expanding investment in technological innovation and product upgrades, making robots increasingly intelligent and capable of serving more industries worldwide, Zhang added.

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Wuxi’s “Token Supermarket”: A one-stop AI model platform for local businesses

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By Yao Xueqing, People’s Daily

When Li Tao, the software department supervisor at Sevice — a security technology company based in Jiangsu — opened Wuxi’s AI industry service platform, he navigated straight to the “Token Supermarket” on the homepage. He logged into his account to check usage metrics and his remaining balance.

Li’s company specializes in intelligent security, with software development as its core business. “Since last year, AI has handled 85 percent of our software development workflows,” Li said. The company needs to purchase tokens from various large language model platforms, with fees calculated based on usage.

Initially, the company’s demand for tokens was limited, and the cost was almost negligible. But as computing needs grew rapidly, monthly expenses increased. Different large models have different capabilities and applications, Li said. Companies not only have to cope with rising costs, but also manage and maintain multiple accounts and switch between different models, he added.

In May this year, Wuxi rolled out this city-level “Token Supermarket.” Li Tao visited the platform the very day it went live. Lined up on its virtual “shelves” were over 20 mainstream large models, covering nearly all those widely adopted by enterprises.

Thanks to the platform’s centralized procurement, most offerings are available at favorable rates. Even more convenient, users need only a single registered account to call upon different large models on demand.

The company immediately decided to register with the “Token Supermarket” and top up its account. Li did the math: with a monthly recharge of 20,000 yuan ($2,963), more than 30 engineers can use 4 billion to 5 billion tokens. The complimentary concurrent-access benefit package has also enabled more than 30 employees to work efficiently in parallel.

As a result, the company has cut research and development costs by nearly 30 percent, shortened software development cycles from two weeks to less than one week, and increased efficiency by 50 percent.

Why did Wuxi launch such a “Token Supermarket,” and what makes it unique?

According to Zhu Yiqing, deputy general manager of Wuxi Digital New Infrastructure Co., Ltd., which operates the platform, token usage is growing rapidly, but companies still face challenges such as high costs, complicated management of multiple AI model accounts and difficulties in calculating expenses.The “Token Supermarket” was developed to provide a one-stop purchasing platform and has already served more than 50 enterprises.

Its customers include not only companies like Li’s that purchase tokens to assist with daily office work, but also many enterprises that buy tokens as “bulk raw materials” for further processing and development.

Dramasmaker, a startup developing AI-powered animated storytelling production tools, is one such customer. The company was founded in August last year and spent more than six months independently developing a one-stop animation production system, which entered the testing and production phase in May of this year, said general manager Wei Jianfei.

The company needs to purchase large amounts of tokens, resulting in high costs. During the early startup stage, this placed considerable pressure on its cash flow, Wei said.

Zhu noted that the “Token Supermarket” can also be connected with financial services, with financial products to be integrated into the platform’s payment system.

Notably, staff members of the “Token Supermarket” are currently sprucing up its virtual premises: alongside an existing “brand zone,” a new “local-source offerings zone” has been rolled out.

According to Zhu, Wuxi’s computing-power industry is developing rapidly, with 19 intelligent computing centers now up and running, most of which deliver computing power for immediate sale. 

Tokens generated by these intelligent computing centers are listed on the “Token Supermarket,” bringing cost-competitive options for users. The platform also bolsters the local computing-power sector while serving small and medium-sized enterprises.

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