China H1 2026 regional growth divergence

China's regional growth data for the first half of 2026 showed a widening gap between high-tech manufacturing hubs and traditional industrial provinces. National GDP growth slowed to 4.7% from 5.0% in 2025. Provinces like China — Guangdong, China — Zhejiang, China — Shanghai, China — Anhui, and China — Shandong accelerated, driven by semiconductors, electric vehicles, and AI, while China — Hunan, China — Jilin, China — Shanxi, and China — Liaoning lagged with growth below 3%. China — Anhui overtook China — Hunan to rejoin the top 10 provincial economies, with high-tech manufacturing output surging 44.6% and exports up 37.6%. President Xi Jinping urged major provinces to lead innovation and develop 'new productive forces'. Weak housing and consumer spending persisted, with fixed-asset investment declining in 18 provinces. Local governments are increasingly assessed on debt resolution and social goals rather than GDP alone.