All the regions in China are making efforts to adapt to the new normal and push forward supply-side reform with economic growth maintaining a stable and sound trend in the first half of this year. New momentums and highlights are springing up nationwide.
Economy in the eastern region showed positive growth with added value of industries above designated scale, and fixed-asset investment up by 7.6 percent, 6.4 percent, and 11 percent respectively in the first half of this year. Tianjin, Fujian and Shanghai are leading the charge. The central region in the first half maintained a stable growth with GDP and added value of industries up by 7.8 percent and 7.3 percent. Fixed-asset investment increased by 12.8 percent, reaching 6.8 trillion yuan ($1.02 trillion). In particular, Shanxi’ economy stepped out of negative growth in June.
Economy in the western region continued to rise with added value of industries, and fixed-asset investment up by 8 percent, 7.2 percent, and 13.5 percent respectively, higher than the first quarter. Chongqing, Tibet, and Guizhou are among the front runners in the nation. Economic downturn of the northeast region has eased up with GDP up by 2.2 percent, 0.3 higher than the first quarter. Jilin contributed 6.7 percent growth, equivalent to the national average, while Liaoning and Heilongjiang also recorded improved figures.
Meanwhile, new momentums are accelerating to power economic growth in different regions. Cross-border e-commerce, new energy vehicles, robots, and other new economies and industries are gaining speed in Zhejiang, Hennan, and Liaoning. Mass innovation and entrepreneurship continue to move forward. Investment in internet and other innovation industries grew by 267 percent in Jiangxi in the first half of this year, Chongqing is the hub of China’s largest crowd-sourcing platform, and Wuxi in Jiangsu province has set up 32 research institutes on internet of things, new materials, electrical machinery, and other industries.
More efforts are being made to promote supply-side reform. More than 20 provinces have promised to cut excessive capacity and 22 provinces have started relocation projects to fight poverty. Guangxi and Henan are offering subsidies to farmers to buy houses in cities, Jilin has set up a government debt warning system, and Heilongjiang has lowered electricity price to cut burden for enterprises.
At the same time, growth of private economy is rising in some regions. In the first half of this year, private investment growth in Guangdong reached 19.6 percent, and export of private enterprises in Fujian from Jan to May contributed 7.3 percent increase of local export.
National new districts and other key functional platforms continue to play a leading role in regional economic development. It is estimated that economic growth of Lanzhou and Gui’an new districts would exceed 20 percent and 30 percent respectively in the first half of this year, and most of other districts will see a growth rate of over 10 percent.