China’s economic powerhouses post strong H1 growth, to underpin steady H2 recovery

China's major economic centers experience robust growth in the first half of the year, providing a solid foundation for a stable economic recovery in the second half.

The first-half GDP figures for the six major economic provinces in China have been published, indicating strong growth rates. These provinces have outpaced the overall national economy, demonstrating a stable recovery even in the face of both domestic and external challenges.

Given their importance in China's economic revival, high-ranking officials have urged these influential entities to actively fulfill their central responsibilities in this endeavor. Experts have noted that despite the challenging circumstances, these regional economies possess the capacity and competence to support China's resurgence in the latter part of the year.

The latest reports for the first half of the year have been released, and Henan Province in Central China was the final province to share its data. Henan is well-known for being home to major manufacturing companies like Foxconn. Their data showed a growth of 3.8 percent compared to the previous year, reaching over 3.13 trillion yuan ($44 billion). This places Henan as the fifth-ranked province in terms of economic performance in China.

Guangdong Province in South China maintained its position as the biggest provincial economy in the country. Its GDP increased by 5 percent, reaching a total of 6.29 trillion yuan. Jiangsu Province in East China experienced a growth of 6.6 percent, reaching 6.05 trillion yuan. Zhejiang Province, also in East China, grew by 6.8 percent, while Shandong's economy saw a growth of 6.2 percent. Sichuan Province in Southwest China, known for its strong economic influence, expanded by 5.5 percent.

The first six provinces had an average growth rate of 5.65 percent in the first half of the year, which is a little bit higher than the overall national rate of 5.5 percent. When we look at the combined GDP of these six provinces, it makes up more than 44 percent of China's total GDP for the same period.

"These strong economic forces managed to sustain a fairly high rate of expansion despite the challenges faced by the export sector. This clearly indicates the successful revival of the major portion of the nation's manufacturing sector. As a result, their growth rate exceeded the average national level," commented Cong Yi, the dean of the School of Marxism at Tianjin University of Finance and Economics, in an interview with the Global Times on Sunday.

In addition to emphasizing the rapid recovery in China, a number of provinces experienced an increase in their growth rates during the second quarter. Shandong's growth rate rose by 1.9 percentage points compared to the previous quarter, while Sichuan saw a rise of 1.7 percentage points. Shandong also experienced a growth rate increase of 1.5 percentage points, and Guangdong's rate went up by 1 percentage point.

Across the country, the Gross Domestic Product (GDP) experienced a significant growth rate of 6.3 percent in the second quarter when compared to the initial quarter's 4.5 percent. This remarkable expansion occurred despite the obstacles faced during this period.

According to Tian Yun, an economist based in Beijing, the recent economic data highlights a stronger and more influential pattern in key economic regions like Guangdong, Jiangsu, and Zhejiang. These regions have traditionally relied heavily on robust export industries.

"After a span of three years during the pandemic, there seems to be a potential solution found in the development of the industrial framework in these eastern provinces along the coast," Tian informed the Global Times on Sunday. "The primary impetus behind progress has shifted from exporting goods to engaging in high-value manufacturing activities."

Due to the substantial size of these influential economic entities, Chinese authorities have urged them to spearhead the nation's economic resurgence. As the recovery process encounters increasing challenges from both within the country and abroad, it is vital for these regions to adopt a proactive approach in order to effectively address these hurdles and maintain their position as leaders in the economic recovery during the latter half of the year, according to analysts.

"After the epidemic that lasted for three years, there has been a rapid transformation in the global scenario, and various provinces' industries require a fresh wave of technological advancements to adapt and thrive. Additionally, it is crucial to receive policy assistance to facilitate this transformation, like implementing tax reductions and fee waivers for high-tech enterprises and small businesses, which can tremendously enhance the market dynamism," Cong remarked.

According to the data from the first part of the year, there has been a continuous improvement in the economy of China. However, there are also concerns about the increasing pressure pulling it down. To counter this, Chinese authorities have made assurances of providing robust policy assistance to enhance growth. This assistance will include measures related to monetary policy and support to the private sector. Recently, the top leaders of China released a comprehensive set of guidelines to encourage the healthy development of the private economy. They have vowed to further improve the conditions for its growth, offer more policy support, create a positive public perception, and foster the growth of entrepreneurs.

"In the latter part, in order to attain rapid growth, it is imperative for us to extend the scope of demand," Tian stated.

He also remarked that China possesses the capacity and capability to address regional government debts, which have grabbed the attention of foreign media, generating excessive publicity.