Decoding Chongqing's Mid-Year Economic Report: Smart Manufacturing Upgrades Industrial Capabilities, High-Tech Investment Fuels Growth Momentum, and Green Consumption Expands Market Potential

On July 21, the economic performance data for Chongqing for the first half of this year were officially released. Beneath the headline figures, what distinctive features characterize the city’s economy? To address this, officials from the relevant industry divisions of the Municipal Bureau of Statistics have offered their interpretations, focusing on key sectors such as industry, investment, and consumption.

Industrial Economy

Smart Equipment and Smart Manufacturing Emerge as Backbone Sectors

According to the head of the Industrial Division of the Municipal Bureau of Statistics, the city’s industrial economy maintained stable and positive performance in the first half of the year. The pace of industrial upgrading and growth-driver transition continued to accelerate, with tangible progress evident in the development of a modern industrial system.

In specific terms, the value-added output of industrial enterprises above designated size grew by 4.1% year-on-year. Among the 39 major industrial categories, 22 recorded positive growth, underscoring the solid and resilient foundation of the city’s industrial sector.

Modern industrial clusters have seen growth across multiple fronts and achieved broad-based expansion. The most notable highlight is the accelerated formation of the “33618” modern manufacturing cluster system, which has driven growth across diverse industrial segments. Within this framework, the smart equipment and smart manufacturing sector recorded a growth rate of 10.5%, establishing itself as a pillar of industrial expansion.

Emerging product capacity continues to expand, with new products and new growth drivers maintaining their leading edge. Output of new energy vehicles, liquid crystal displays, integrated circuit wafers, lithium-ion batteries, and industrial robots all posted steady growth. Among these, lithium-ion battery production surged by 63.2% year-on-year, reflecting the rapid capacity release of the new energy sector. Further, the output of completed motorcycles rose sharply, up 49.7% compared with the same period last year, positioning this segment as a significant incremental contributor to industrial exports and overall capacity growth.

 Industrial foreign trade resilience continues to strengthen, with export growth recovering month by month. In the first half of the year, the export delivery value of industrial enterprises above designated size in the city reached RMB 237.704 billion, representing a year-on-year increase of 11.8% —a growth rate 3.3 percentage points higher than that recorded in the first quarter. The electronic information industry continued to spearhead exports, accounting for over 70% of the total. Meanwhile, the “Chongqing-made Vehicles Going Global” initiative drove a significant rebound in the automotive manufacturing sector’s export growth, further enhancing the international competitiveness of “Made in Chongqing” products.

Tertiary Industry

Culture & Tourism, Logistics, and Sci-Tech Innovation Drive Growth across Multiple Fronts, Becoming the Main Engine of Economic Expansion

 According to the head of the Service Industry Division of the Municipal Bureau of Statistics, the city’s service sector demonstrated notable resilience and vibrant vitality in the first half of the year. The tertiary industry achieved a value-added of RMB 1.03 trillion, accounting for 62% of the city’s total GDP, with a year-on-year growth rate of 5.3%, cementing its position as the core pillar underpinning the city’s overall economic performance.

From January to May this year, modern service sectors centered on leasing and business services, information transmission, and scientific research delivered outstanding performance. Their combined operating revenue accounted for 57.4% of the total revenue of service enterprises above designated size in the city, registering a year-on-year growth of 12%. Meanwhile, high-end producer services, including R&D, operation and maintenance, engineering technology, and organizational management, experienced rapid growth.

Three new growth drivers – cultural tourism, corridor logistics, and sci-tech innovation services – have gathered momentum and taken shape. In particular, the cultural tourism market has remained exceptionally vibrant. The city’s tourism popularity during major holidays consistently ranked among the top nationwide. Revenue in the travel agency, leisure sightseeing, and scenic area management sectors all posted growth rates exceeding 30%, while the number of large-scale commercial performances surged by 50% year-on-year.

From a regional development perspective, the main metropolitan area has continued to exercise its core radiating role, concentrating over 90% of the city’s total service sector revenue. Meanwhile, the northeastern and southeastern Chongqing regions have seen accelerated growth in their service industries, indicating ongoing improvements in the coordinated development of the service sector across the city’s regions.

Fixed-Asset Investment

Investment in High-Tech Industries and the Real Economy Gathers Momentum and Empowers Growth

“In the first half of the year, our city seized the policy window of opportunity to vigorously advance the implementation and construction of major projects. The structure of fixed-asset investment continued to be optimized, featuring distinct characteristics: high-tech sectors taking the lead, industrial investment providing a solid foundation, equipment upgrading accelerating, and infrastructure construction steadily improving in quality,” said the head of the Investment Division of the Municipal Bureau of Statistics.

Investment in high-tech industries achieved a leapfrog increase, demonstrating strong growth momentum. In the first half of the year, citywide investment in high-tech industries rose by 14.6% year-on-year, with the growth rate accelerating by 21.7 percentage points compared to the first quarter. Investment in R&D and design as well as information services doubled, while science and technology innovation industries and high-end manufacturing projects accelerated their implementation, building momentum for industrial innovation and development.

Investment in the real economy provides solid support, with pillar industries undergoing expansion and upgrading. Among these, investment in the three core industries—automotive, equipment, and materials—continued to gain momentum. Notably, investment in the automotive sector grew by 20.1% year-on-year, demonstrating the industrial chain for intelligent connected new energy vehicles is continued to improve.

Equipment renewal policies have taken effect and delivered results, unleashing vitality in manufacturing technological transformation. Citywide investment in the purchase of equipment and instruments was increased by 6% year-on-year. Sectors such as automotive, new materials, and consumer goods saw significant growth in equipment renewal investment, while equipment upgrades in public facilities also accelerated. Businesses across the board have shown a growing willingness to pursue technological upgrades and capacity iteration.

Consumer Market

Quality Enhancement and Green Development Drive Consumption Upgrading

According to the head of the Trade Division of the Municipal Bureau of Statistics, during the first half of the year, the city continued to implement policies to “expand domestic demand and promote consumption.” The consumer market saw a steady recovery and continued structural optimization, with a clear trend toward both scale expansion and quality improvement.

The resilience of the consumer market continues to manifest, with the growth trajectory steadily improving. In the first half of the year, the city’s total retail sales of consumer goods grew at a rate that was 0.5 percentage points higher than in the first quarter. More than half of all commodity categories registered positive growth. Basic living necessities—such as grain and oil, food, tobacco and liquor, and apparel—enjoyed steady expansion, effectively safeguarding the foundation of consumer spending.

Upgraded consumption demand has been released in a concentrated manner, as resident spending accelerates its shift toward higher quality. Retail sales of sports and entertainment products grew by 22.5%, while those of communication equipment rose by 12.6%. Green and intelligent consumer goods—such as smartphones, high-efficiency home appliances, and high-end photographic equipment—sold particularly well, reflecting strong market enthusiasm.

Green consumption has emerged as a new trend, driving continuous iteration in the consumption structure. In particular, the penetration rate of new energy vehicles (NEVs) has continued to rise. Retail sales of NEVs accounted for 47.1% of the city’s total automotive retail sales, an increase of 7.3 percentage points compared with the same period last year. Green, smart, and low-carbon consumption concepts have taken deep root among consumers, and the consumer market continues its upward evolution toward new, green, and high-quality dimensions.

Source: Chongqing Daily