China's economy began its '15th Five-Year Plan' year with a steady performance amid a complex international environment. Premier Li Qiang, speaking at the opening of the 17th Summer Davos Forum in Dalian on June 24, 2026, characterized the current economic situation with four words: stable, new, active, and integrated.
In the first quarter, China's economy grew by 5%, and the momentum continued into the second quarter with rising corporate profits, moderate price rebound, and improving livelihoods. Built on a massive base of about 140 trillion yuan and facing challenges such as international energy shortages and supply chain disruptions, this growth was described as a crucial 'safe haven' for the world.
New industries and business forms emerged in large numbers. In the first half of the year, commercial space activities saw multiple rocket launches, while technologies in quantum information, integrated circuits, and nuclear fusion accelerated. Artificial intelligence was particularly prominent, with breakthroughs in several large models; by the end of May, daily token call volume reached hundreds of trillions, and embodied intelligence began commercial-scale deployment.
Market vitality was evident in consumption and logistics. Service consumption, green consumption, and new types of consumption were highlights, with strong demand for tourism, performances, and sports events, and sales of smartwatches and smart glasses multiplying. Currently, China handles over 550 million express deliveries per day.
Opening-up continued despite rising protectionism. China has implemented zero-tariff policies for 63 countries, with imports ranked second globally for 17 consecutive years and import growth rate reaching 20.5% in the first five months of this year, outpacing exports. The 'Export to China' series of events provided more channels for foreign products to enter the Chinese market.
Li Qiang noted that innovation is the cornerstone of China's long-term economic growth. He summarized the efforts behind it in three ways: innovation is achieved through hard work, applied across industries, and nurtured within a supportive ecosystem.
Regarding investment, R&D spending grew at an average annual rate of 10% during the '14th Five-Year Plan' period, ranking second globally, with the share of basic research exceeding 7% last year. During the '15th Five-Year Plan' period, China will continue to strengthen key technology research and raise the share of basic research funding. Many leading enterprises endured long-cycle, high-input R&D, some facing huge losses or external suppression, but ultimately reaped rewards.
In application, the integration of technology and industry was highlighted as an effective feature of China's innovation pathway. The development of new energy and intelligent connected vehicles benefited from breakthroughs in new materials, power batteries, and communications, rather than government subsidies. A complete industrial system and a vast market allow any valuable technological achievement to be rapidly turned into products, with niche products becoming major businesses.
In the ecosystem, China built a multi-source investment system led by enterprises, guided by the government, and participated in by society, constructed major research facilities and infrastructure, and trains about 7 million science, technology, engineering, agriculture, and medicine graduates annually. China now has 24 of the world's top 100 innovation clusters, ranking first for three consecutive years, with industrial clusters spread across the country.
Li Qiang mentioned that the so-called 'China Shock 2.0' narrative had emerged internationally, but more voices referred to 'China Opportunity 2.0.' He stated that China is shifting from mainly providing market dividends to offering both market and innovation dividends. An increasing number of foreign companies have set up R&D centers and regional headquarters in China, deeply integrating into the innovation and industrial chains. In 2025, 14,000 new foreign-funded enterprises were established in the technology research and technical services sector, a year-on-year increase of 27.2%. Additionally, China's open-source AI large models have surpassed 10 billion global downloads, large scientific facilities for controllable nuclear fusion and quantum technology are open to the world, and the Tiangong space station is about to welcome foreign astronauts.
Li emphasized that global innovation is showing new characteristics: faster technological progress with higher unpredictability, and deeper integration with increasing barriers. He called for deeper connectivity and collaboration to pool innovation forces, and for upholding technology for good to promote joint governance. China will continue to participate in global governance of AI and other fields and improve regulatory rules.
He concluded by encouraging entrepreneurs to be leaders in innovation, practitioners of win-win cooperation, and companions in China's development, pledging that China will further expand market access, fully implement national treatment for foreign-invested enterprises, and create a world-class business environment.