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Four key insights into China’s first-quarter economic performance

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By Qiu Chaoyi, People’s Daily

China’s economy got off to a solid start in the first quarter of the year, with GDP expanding 5.0 percent year on year. Across the board, key indicators showed encouraging performance. Four keywords shed light on the quality and underlying strength of the country’s first-quarter economic performance.

Steady Improvement

Preliminary data show that China’s GDP reached nearly 33.42 trillion yuan ($4.9 trillion) in the first quarter, growing 5 percent year on year in real terms, an increase of 0.5 percentage points from the fourth quarter of last year.

Breaking down the data, agricultural production remained stable, while industry and services both posted steady growth. The value added of the primary industry reached 1.19 trillion yuan, up 3.8 percent; the secondary industry grew 4.9 percent to 11.61 trillion yuan; and the tertiary industry rose 5.2 percent to 20.61 trillion yuan.

Price levels remained generally stable, with core CPI (Consumer Price Index) which excludes food and energy prices, up 1.2 percent year on year. Investment also rebounded, with fixed-asset investment (excluding rural households) reaching 10.27 trillion yuan, up 1.7 percent and returning to positive growth. 

Consumption showed steady improvement, as retail sales of consumer goods rose 2.4 percent year on year to nearly 12.77 trillion yuan, accelerating by 0.7 percentage points from the previous quarter. Employment remained stable, with the surveyed urban unemployment rate averaging 5.3 percent, unchanged from a year earlier.

“Overall, major macroeconomic indicators picked up in the first quarter, new growth drivers expanded rapidly, and the economy achieved a good start,” said Mao Shengyong, deputy head of the National Bureau of Statistics.

Strong Resilience

Against a high comparison base from last year’s first quarter and a far more complex, challenging global outlook, China’s economy delivered a robust opening performance, fully demonstrating its remarkable resilience.

Take foreign trade, for example. In the first quarter, China’s total imports and exports of goods reached nearly 11.84 trillion yuan, up 15 percent year on year, the fastest quarterly growth in the past five years. Mao noted that the strong competitiveness of Chinese enterprises, the high cost-effectiveness of their products, and supportive policy measures have helped offset external uncertainties and expand new space for trade.

Energy security also reflects this resilience. “Amid rising global energy prices driven by geopolitical tensions, China has maintained stable and orderly energy supply, with timely price adjustments ensuring sufficient energy for both households and businesses,” Mao said. 

This stability stems from years of forward-looking efforts to develop new energy industries and build a diversified energy supply system, significantly enhancing the economy’s autonomy and stability, he added.

Supported by China’s vast domestic market, complete industrial system, and strong supporting capabilities, industrial and supply chains have remained secure and stable, effectively cushioning external shocks. This demonstrates the strong resilience and anti-risk capability of the Chinese industry and provides solid support for overall economic stability.

Innovation-Driven, High-Quality Development

In the first quarter, China’s new quality productive forces continued to grow steadily, characterized by high-end, intelligent, green, and upgraded development.

High-end manufacturing and modern services expanded rapidly. The value added of high-tech manufacturing enterprises above designated size rose 12.5 percent year on year, raising its share in total output of industrial enterprises above designated size to 16.9 percent and contributing 2 percentage points to overall growth of industrial enterprises above designated size.

Intelligent development gained further momentum. Output in sectors directly related to artificial intelligence (AI), including electronic materials and integrated circuits, grew by 32.5 percent and 49.4 percent, respectively, highlighting AI’s growing role as a driver of economic activity.

Green transformation is also creating new growth engines. In the first quarter, production of lithium-ion batteries and wind turbines rose by 40.8 percent and 30.1 percent, respectively. Exports of the “new trio” — electric vehicles, lithium batteries, and solar products — continued to grow rapidly, with electric vehicle exports surging 77.5 percent, contributing to the global transition toward green and low-carbon development.

Meanwhile, traditional industries are being revitalized through steady upgrading, with faster progress in equipment renewal and technological transformation.

Confidence in the Outlook

Looking ahead, China has every reason to remain confident about its economic prospects.

“We have strong institutional strengths, as well as accumulated advantages in industry, market size, and talent. We are fully capable of maintaining stable economic performance and achieving high-quality development throughout the year,” Mao said.

With first-quarter GDP growth of 5.0 percent, China continues to rank among the fastest-growing major economies globally. Growth is increasingly driven by innovation, the cultivation of new quality productive forces, and the rapid expansion of new growth drivers.

At the same time, improving demand is creating favorable conditions. Domestic demand contributed 84.7 percent to economic growth in the first quarter, up nearly 30 percentage points year on year. Imports of consumer goods rose 5.4 percent, indicating a gradual recovery in domestic demand, particularly the continued release of potential in service consumption.

“Despite a complex external environment, we have the strength and resolve to meet any risks and challenges,” Mao said. “That assurance is built on our past achievements, and we remain confident about the future.”

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From cargo carriers to power banks: China’s containers energize new industries

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By Wang Weijian, Cheng Yuanzhou, Dou Hao, People’s Daily

China has long been the backbone of the global container industry. In 2024, the country produced more than 8.1 million twenty-foot equivalent units (TEUs), up 268.2 percent year on year, accounting for 96 percent of global output. 

Today, these steel structures transcend their traditional role as standardized shipping units, evolving into creative urban modules and critical infrastructure for renewable energy sectors.

At Dong Fang International Container’s Jiangsu facility, rows of newly manufactured units await shipment to European clients via Shanghai’s Yangshan Port. Though externally identical to standard containers, their interiors reveal sophisticated battery arrays integrated with safety systems, thermal controls, and environmental management technology — essentially transforming them into massive “power banks.”

“Modern container manufacturing extends far beyond welding steel boxes,” explains Zhai Jianxing, the company’s technical director. “Material science is now paramount.” Energy storage containers demand radically different specifications from shipping units: requiring 20+ year lifespans (versus 2-year warranties for standard units) and meeting rigorous standards for explosion prevention, fire resistance, and corrosion protection.

To meet these challenges, manufacturers have pioneered advanced materials. Traditional weather-resistant steel with triple-layer paint has been replaced by zinc-aluminum-magnesium coated steel, offering self-healing properties and exceptional resilience in high-salinity coastal environments. 

Other innovations have followed. Ceramic wool insulation has been added for fire protection; environmentally friendly water-based coatings have replaced traditional oil-based paints; and bamboo flooring has been introduced to reduce reliance on timber resources.

These advancements enable containers to serve diverse new functions across renewable energy generation, computing centers, and modular construction. Beyond industrial applications, containers are revitalizing communities.

In Huanghu township, Hangzhou, east China’s Zhejiang province, two stacked containers sit in an open space in a smart agriculture park. Inside, lettuce grows on metal racks while tomatoes thrive under artificial lighting. This mobile, digitally controlled plant factory offers a striking example of innovation.

“Through precise environmental control systems, we tailor light formulas, nutrient solutions, and temperature and humidity conditions for plants,” said Lei Lina, head of the facility. As a flexible cultivation unit, container-based plant factories can be assembled and transported like building blocks, making it easier to supply fresh produce locally.

Meanwhile, along the East Taihu Lake in Suzhou, Jiangsu province, visitors are drawn to a stylish cafe. Built from four specialized containers, the structure combines aesthetic appeal with practical functionality.

“To adapt these containers for civilian use, we incorporated soundproof panels, fire-resistant magnesium oxide boards for flooring, and high-strength steel just 6 millimeters thick for structural support,” said Qian Xiaohui, head of Suzhou Zhongnan Steel Structure Co., Ltd. “This ensures safety while maximizing interior space.”

The expanding versatility of containers is closely tied to advances in smart manufacturing.

At an intelligent factory of a logistics equipment company under China International Marine Containers (CIMC) in Ningbo, Zhejiang province, more than 500 robots perform welding, assembly, and painting with millimeter-level precision. Steel plates are transformed into standard dry cargo containers along automated production lines.

“By leveraging 5G, artificial intelligence (AI), and digital twin technologies, we’ve achieved automated and intelligent production,” said Zhang Kechao, the company’s general manager. “Per capita efficiency on a single production line has increased by over 30 percent, and capacity utilization has reached 95 percent.”

At CIMC’s refrigerated container base in Qingdao, east China’s Shandong province, AI-powered industrial models enable the production of a high-end refrigerated container in just 220 seconds on average. In Xinhui, south China’s Guangdong province, more than 300 automated spray guns operate on fully automated powder-coating lines, ensuring seamless and comprehensive coverage.

From a “green revolution” in materials to breakthroughs in application scenarios and upgrades in intelligent manufacturing, the transformation of China’s container industry reflects the integration of new quality productive forces into traditional sectors. 

As technologies such as AI and the Internet of Things continue to develop, this “Made-in-China” product is poised to play an even greater role in global trade, energy transition, and urban development.

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AI and structural upgrades forge a more robust Chinese steel industry

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By Wang Yunshan, People’s Daily

China’s steel industry is accelerating its transformation through structural upgrades and the deep integration of artificial intelligence (AI), strengthening its capacity to supply high-end materials for advanced manufacturing.

At Shougang Zhixin Qian’an Electromagnetic Material’s production line, robotic arms handle coils of high-performance electrical steel with precision. Among these is an ultra-thin variant measuring just 0.1 millimeters — the world’s first when launched in August 2025.

Electrical steel is a key material for new energy vehicle motors, high-end home appliances, and ultra-high-voltage transformers, said An Dongyang, chief technical expert of the company. 

“This material is critical for new energy vehicle motors, premium appliances, and ultra-high-voltage transformers,” explained An Dongyang, the company’s chief technical expert. Developed to meet demands for smaller, more powerful EV motors, the innovation attracted immediate interest from over a dozen automakers. Compared to standard 0.25mm steel, it reduces energy loss by over 30% and significantly improves efficiency, extending vehicle range.

“Today, one in three new energy vehicles in China uses this product” An said, adding that  specialized applications for humanoid robots are now being explored.

As a cornerstone of China’s industrial system, the steel sector has in recent years stepped up efforts to upgrade its product mix and expand the supply of advanced materials. In 2025 alone, nearly 20 world’s first steel products were launched.

China’s top steel manufacturers are powering major national breakthroughs across key industries. Masteel, a subsidiary of China Baowu Group, produces high-speed railway wheels for the CR450, the world’s fastest bullet train. Pangang Group Company Limited, under Ansteel Group, supplies special blade steel for China’s first homegrown F-class 50MW heavy-duty gas turbine. Nanjing Steel Group provides exclusive steel plates and sections for Adora Magic City, China’s first large domestically built cruise liner.

These developments reflect a broader shift in demand. In 2025, steel used in construction accounted for 49 percent of total demand, down from 58 percent in 2020, while manufacturing’s share rose from 42 percent to 51 percent.

“For the first time in China’s history, steel demand from manufacturing has surpassed that from construction,” said Jiang Wei, vice chairman and secretary-general of the China Iron and Steel Association. “This reflects the industry’s proactive adaptation to changing demand and its push toward higher-quality development.” 

During the 14th Five-Year Plan period (2021-2025), China’s steel self-sufficiency rate remained close to 100 percent, ensuring strong support for the broader economy.

Alongside product upgrading, digital and intelligent technologies are reshaping production processes.

At a plant of HBIS Group’s Tangsteel Company in Tangshan, north China’s Hebei province, molten steel at 1,650 degrees Celsius poured from a converter. In the control room, chief expert Zhou Quanlin monitored operations on a screen. With a few taps, the system autonomously completed key smelting processes.

Achieving precise temperature control in steelmaking is highly complex. Last year, HBIS Group integrated large AI models into its proprietary platform to develop an intelligent steelmaking system, now applied in core production stages.

“In the past, we relied on experience, watching the flame and judging when and how much material to add,” Zhou explained. “Now, the AI model analyzes vast historical data along with real-time signals such as furnace sound and gas emissions to precisely control reactions inside the furnace.”

The results have been significant: since deployment, steelmaking efficiency has increased by 10.3 percent, while overall energy consumption has dropped by about 10 percent.

AI is reshaping every link of China’s steel industry, far beyond steelmaking itself. Steel manufacturer Baosteel uses an AI cloud surface inspection system. It accurately spots 96 percent of critical material flaws, and cuts missed inspections by 35 percent. 

Meanwhile, Shanghai Steel Information Technology Co., Ltd. leverages AI for smarter supply chain operations. It handles more than 10 million daily transactions with over 95 percent accuracy, and completes billions of intelligent trade matches efficiently.

Today, AI integrates across steel production, manufacturing, and operations, accelerating industry-wide intelligent transformation. Over 95% of major steel enterprises tracked by the China Iron and Steel Association have incorporated digitalization into core strategies, shifting from pilot projects to systematic implementation.

As a pillar industry of the national economy, the steel sector boasts massive data resources and diverse industrial application scenarios, and thus serves as a perfect platform where next-generation AI can make a difference, said Zhang Longqiang, president of the China Metallurgical Information and Standardization Institute. 

“AI-steel integration holds immense long-term potential,” he added. “With large language models permeating production chains, industry-wide intelligent upgrading will accelerate significantly.”

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Beyond ‘menu or table’: how middle powers fuel global multipolarity

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By Huan Yuping, People’s Daily

Recently, leaders of the five Nordic countries and Canada issued a joint statement, announcing plans to advance shared principles and interests through regularized, multi-level meeting. International observers view this as an emerging “middle power” alliance to reduce dependence on the United States.

“If we are not at the table, we will be on the menu.” Canadian Prime Minister Mark Carney’s stark warning earlier this year captured the growing anxiety among traditional U.S. allies amid resurgent power politics and shifting global rules. His prescription? Middle powers must awaken.

To understand this geopolitical shift’s implications, three questions merit examination.

First, What defines middle powers?

Occupying the global hierarchy’s middle tier, these states lack superpower dominance but resist subordination to major powers. They possess meaningful economic strength, diplomatic agency, and regional influence.

Their growing assertiveness reflects fundamental global transformations. Intensifying geopolitical competition has destabilized international systems, while hegemonic actions increasingly threaten core national interests. Compelled to protect their sovereignty, middle powers are prioritizing strategic autonomy and mutual cooperation.

Second, how does their rise reshape global dynamics?

This activism accelerates multipolarity’s irreversible advance. A 2026 report by Australia’s Institute for Economics and Peace shows that the collective rise of middle powers is profoundly reshaping the global power balance, and will continue to be a key force influencing the direction of the international order over the next two decades.

True multipolarity extends beyond power redistribution: it enables diverse development models, governance approaches, and civilizational coexistence. Historically dominated by few powers, today’s international system benefits as middle powers counterbalance unilateralism through coordinated positions.

Yet caution remains: Cooperation shouldn’t undermine multilateralism. If middle-power alliances prioritize exclusive interests over universal rules, they risk becoming new factional blocs — tools for heightened geopolitical rivalry. Critically, lasting autonomy requires confronting structural dependencies on hegemonic powers, not merely reacting to their policies.

Third, how can middle powers strengthen global stability? 

Faced with a world marked by turbulence and transformation, middle powers certainly have a legitimate need to safeguard their own rights and interests. However, such efforts should proceed from the bigger picture, addressing the root causes in order and governance, and helping shape an overall environment more conducive to peace and development.

They should make efforts to build an equal and orderly multipolar world. Regardless of size or strength, all countries are equal stakeholders in the international community, and should abide by universally recognized international rules. Only in this way can the “awakening” of middle powers be transformed into a driving force for cooperation, and deliver sustained benefits to world peace and development.

They must firmly uphold international rule of law and fairness and justice. In today’s international relations, the rule of law serves as the fundamental guarantee and the essential foundation for fairness and justice. Middle powers should defend their legitimate rights and interests within the framework of international law, fully, faithfully, and comprehensively observe the purposes and principles of the UN Charter and other universally recognized basic norms governing international relations, and firmyly reject double standards. Only then can they effectively uphold the authority and seriousness of international rule of law.

They need to stand united in opposing hegemonism and power politics. The most prominent global challenge today lies in hegemonic acts that gravely destabilize the international order. If middle powers truly wish to play a greater and more positive role in international affairs, they should unite with the broader international community, uphold the principle that international affairs should be discussed and handled by all countries together, build the broadest possible consensus for defending multilateralism, and speak with one voice in safeguarding international order.

Transcending the “menu or table” paradigm demands addressing root causes. By abandoning zero-sum mentalities and embracing inclusive multilateral cooperation — jointly pursued and mutually beneficial — middle powers can forge stability through consensus. This constructive approach will sustain their vital contributions to global peace, stability, and shared prosperity.

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