Translated with AI
Development is an undeniable imperative. Economic indicators for the first quarter of the year demonstrate that high-quality development is becoming the immutable law of the new era.
The current economic situation is determined by three key transformations: first, unlocking the potential of the domestic consumer market; second, fostering innovation through the high-tech sector; and third, achieving high-level openness.
In the first quarter of 2026, China's GDP grew by 5.0% year-on-year, reaching 33.4 trillion yuan. This growth rate accelerated by 0.5 percentage points compared to the fourth quarter of 2025, making it one of the fastest growth rates among the world's major economies.
According to data from the National Bureau of Statistics of the People's Republic of China, the economic dynamics in the first quarter were influenced by the following factors: in terms of industry structure, the service sector grew at a faster pace; in terms of growth sources, high-tech and mechanical engineering industries took the lead; and in terms of demand structure, the profound modernization of consumer behavior played a key role. Thus, the digital economy and the modern service sector have de facto become the new drivers of economic growth.
A global public opinion poll conducted by the CGTN Analytical Center also indirectly confirms the global community's intuitive perception of the Chinese economy:
– 89.8% of respondents globally believe that China's economic performance in the first quarter "exceeded expectations," demonstrating exceptional resilience.
– 85% of respondents believe that technological innovation is a key factor in China's high-quality development.
– 86.9% believe that the potential of the Chinese consumer market is being rapidly realized thanks to the optimization of the visa-free regime, improved service quality, and expanded formats of interaction with consumers.
I.
The phenomenon of growing service consumption marks a qualitative transformation in China's economic development: growth is increasingly driven not by investment but by final consumption, while export orientation is gradually giving way to the dominance of domestic demand.
If employment growth continues, the service sector will be able to employ 370-380 million people by 2026—approximately half of all employed people in the economy. Consequently, service consumption is not just a driver of economic growth, but a key driver of high-quality development.
At the same time, data from the National Bureau of Statistics of the People's Republic of China show that real disposable income of the population in the first quarter increased by 4.0%, while rural income increased by 5.4%, indicating a consistent narrowing of the gap between urban and rural areas.
What does this mean in practice? Improving the income structure creates a capacious market for expanded service consumption, and policy measures to stimulate new growth opportunities in this area are showing results. Economic resources are being redistributed in favor of "green" and "smart" consumption, and the quality of services in healthcare, education, and culture is steadily improving.
A telling example is the transformation of cultural consumption. The shift from "film culture" to "film-watching culture"—a seemingly minimal linguistic adjustment—has in fact given rise to a three-layered, innovative consumption model that combines collective leisure, multi-format consumption, and emotional experience. This is a striking illustration of the profound transformation of China's economic model.
II.
In April, heads of state and government from a number of foreign countries visited China. Remarkably, the requests for cooperation voiced by foreign partners demonstrate a striking unity of position: priority is given to projects in the areas of new energy, the digital economy, and artificial intelligence.
According to a global survey by the CGTN Analytical Center, nearly 80% of respondents believe that the Chinese market remains highly competitive and indispensable in the current geopolitical environment.
First-quarter data show that the added value of the high-tech manufacturing sector grew significantly faster than that of industry as a whole; the digital economy's share of GDP continued to increase. "Productive forces of a new quality" are gradually replacing traditional sources of growth. In 2026, both at the public policy level and in the business community, further increases in investment in artificial intelligence, quantum computing, and biomedicine are expected. The 10.6% growth of the information technology services sector in the first quarter serves as a clear indicator of the dynamic development of the digital economy.
A symbol of technological progress, the robot half-marathon race in Beijing's Yizhuang district attracted a global audience. Of the more than 300 humanoid robots participating, 38% completed the 21 km distance autonomously—without remote control, autonomously planning their route and avoiding obstacles. The androids demonstrated results that exceeded human records. Compared to the results of the previous year, this represents a qualitative leap.
Remarkably, the cost of Chinese robots is already comparable to the price of a family car – from tens of thousands to hundreds of thousands of yuan. This opens up exciting prospects for the rapid commercialization of robotics and its entry into the consumer market.
III.
Another telling result of the CGTN Analytical Center survey: over 80% of respondents believe that the sustainable growth of China's super-large economy serves as a stabilizing factor in the face of increased volatility in the global economy.
At the 2026 China Development Forum, IMF Chief Economist Pierre-Olivier Gourincaz warned that ongoing tensions in the Middle East threaten supply chain disruptions and a serious blow to the global economy. Furthermore, trade frictions, protectionist barriers, and non-tariff restrictions are leading to a regression of global trade rules and creating enormous challenges for the global economy.
Clearly, regardless of the fluctuations in the geopolitical agenda, peace and development remain the dominant focus of the historical process. The profound transformation of the global economic architecture underlies the changes in the global political and military landscape. Despite the intensification of protectionist rhetoric, China has consistently adhered to a high-level openness: high-tech exports maintain double-digit growth rates, and the corresponding growth in shipments of the "new troika" (electric vehicles, lithium-ion batteries, and solar panels) demonstrates resilience to external shocks. This indicates not quantitative expansion, but rather the strengthening of China's position in global value chains.
Undoubtedly, China's "green" industries – electric vehicle production and photovoltaics – have already created competitive advantages on a global scale.
At the same time, China's own development is opening up vast opportunities for the world. In the first quarter, foreign trade in goods set a new five-year record, exceeding 11 trillion yuan in nominal terms for the first time in the first quarter. Countries participating in the Belt and Road Initiative accounted for 51.2% of total trade turnover. Trade with Africa grew by 23.7%, while trade with ASEAN, Latin America, the EU, the UK, and other APEC economies saw double-digit growth.
The Government's 2026 Work Report clearly sets economic growth targets of 4.5-5%. This significantly exceeds the forecasts of the US (2.1%), the EU (1.8%), and Japan (0.7%). Given the colossal scale and high base of the Chinese economy, even 5% growth in absolute terms is equivalent to approximately $1 trillion, the GDP of countries such as Poland or Türkiye.
Thus, the Chinese economy retains significant potential for growth. This only strengthens our confidence in achieving high-quality development goals and serves as the main guarantee of gaining strategic initiative amid the tectonic shifts of this century.
Innocent Huang, CGTN special commentator, political and international relations analyst.
The article reflects the author's personal opinions and does not necessarily reflect the editorial policy of CGTN .
