SCIO briefing on China's economic performance in Q1 2026

Zhinews of Shenzhen Satellite TV:

This year's government work report emphasized the need to develop new quality productive forces in accordance with local conditions. Various regions and departments have since introduced supportive measures. Could you elaborate on the progress of new quality productive forces since the start of this year? What progress and highlights have been made in promoting high-quality development through new quality productive forces? Thank you.

Mao Shengyong:

Thank you for your questions. Developing new quality productive forces in accordance with local conditions is essential to promoting high-quality development. Since the 18th CPC National Congress, we have leveraged the advantages of the new system for mobilizing resources nationwide, continuously increased investment in research and development, and strengthened and intensified efforts to accelerate breakthroughs in core technologies in key fields. We have made steady progress in overcoming technological bottlenecks, driven industrial innovation through scientific and technological innovation, and steadily developed new quality productive forces, with new growth drivers continuing to strengthen. We have continued to increase R&D investment. In 2025, China's R&D intensity reached 2.8%, exceeding the average level of Organization for Economic Cooperation and Development (OECD) countries for the first time. New quality productive forces have developed steadily, and new growth drivers have continued to grow, providing solid support for the stable operation of the national economy in a complex environment and its transition toward more innovative and higher-quality development.

In the first quarter, progress was made in cultivating new quality productive forces, mainly reflected across four areas. First, high-end development accelerated, with high-end manufacturing and modern services expanding rapidly. Second, intelligent development gained momentum, further strengthening its role as a driver of growth. Third, green transition gave rise to new growth drivers. Fourth, industrial transformation advanced, as traditional industries were revitalized and upgraded. I will address each in turn.

First, high-end manufacturing and modern service industries expanded rapidly. China is pushing for breakthroughs in key and core technologies while expanding into frontier fields across the full industry chain. Innovations in aerospace, quantum technology, biomedicine and other sectors are being deployed at an accelerating pace, driving industrial upgrading. In the first quarter, the value added of high-tech manufacturing enterprises above designated size grew 12.5% year on year, accounting for 16.9% of the total value added among enterprises above designated size and contributing 2 percentage points to their overall growth. For example, the high-tech spacecraft and equipment manufacturing sector grew 17.7%, while aircraft manufacturing rose 27.3%. In the first quarter, the value added of information transmission, software and information technology services grew 10.6% year on year, while leasing and business services climbed 12.2%. Together, the two sectors accounted for nearly 25% of economic growth.

Second, intelligent development further strengthened its role as an economic driver. China has made phased breakthroughs in the commercial and large-scale application of AI. By March this year, average daily token calls had exceeded 140 trillion, up more than 40% from the end of last year. AI development is empowering a wide range of industries and driving rapid growth across related sectors. In the first quarter, the value added of industrial enterprises above designated size in the digital product manufacturing sector increased 11.2% year on year. The value added of specialized electronic materials manufacturing and integrated circuit manufacturing — both directly related to the production and application of AI — grew 32.5% and 49.4% year on year, respectively. AI's driving role has further extended upstream to chemical and power industries that supply raw materials and energy, with its spillover effects across related sectors becoming increasingly evident.

Third, green transition gave rise to new growth drivers. In recent years, we have made notable progress in green development. In the first quarter, the share of non-fossil energy consumption in total energy consumption increased 0.4 percentage point year on year, further optimizing the energy mix and creating more room for green energy-related industries. Green productive forces gained momentum, with green trade expanding rapidly. In the first quarter, the output of lithium-ion batteries and wind turbine generators grew rapidly, up 40.8% and 30.1% year on year, respectively. Exports of the "new three" products, namely electric vehicles, lithium-ion batteries and solar cells, continued to grow rapidly, with electric vehicle exports surging 77.5%. China's new energy industry not only supports its own economic development but also contributes to the global green and low-carbon transition.

Fourth, traditional industries were revitalized. The transformation and upgrading of traditional industries is a key source of new quality productive forces. Through new technologies and products, China is accelerating the transformation and upgrading of traditional industries, with equipment renewal and technological upgrading picking up pace. In the first quarter, investment in equipment and tools grew 13.9% year on year. The petrochemical and chemical industries, as key areas for pollution and carbon reduction, have achieved notable results in transformation. Among chemical fiber enterprises above designated size, the share of bio-based materials manufacturing in value-added growth rose 14.4 percentage points year on year. Among petroleum processing enterprises above designated size, the share of biomass fuel processing in value-added growth increased 1.4 percentage points.

That is all from me for this question. Thank you.

Jia Huili:

The last question, please.