China’s economy off to strong start in first two months of 2026
The Chinese economy has gotten off to a robust start in the first two months of this year, buoyed by a string of upbeat economic data, particularly in AI and other innovative industries.
The scientific and technological industries maintain their momentum, with sales revenue growing by 16.1 percent year on year in January and February, continuing their rapid expansion, according to the latest data from the State Taxation Administration.
Meanwhile, the flow of technological resources has remained robust, further accelerating the integration of the digital and physical economies.
In the first two months, sales revenue in scientific research and technical services surged 23.6 percent year on year, while corporate spending on digital technologies rose 10.8 percent, underscoring the strong momentum in innovation and digital transformation.
Multiple leading economic indicators showed positive trends in the same period, as shown in the latest data from the State Information Center of the National Development and Reform Commission. Emerging sectors are attracting more capital.
From January to February, the awarded contract value for new infrastructure construction, such as computing centers and backbone networks, and for software and hardware development, increased by 25.7 percent year on year.
Capital investments in cutting-edge fields like advanced manufacturing and artificial intelligence (AI) soared by 59.5 percent in number and 60.5 percent in value compared to the same period last year.
Market confidence continues to recover, with industries showing a pronounced shift toward new development trends.
From January to February, the business vitality index for startups increased by 15.7 percent year on year, while that for innovative enterprises rose by 14.8 percent.
China's innovation dynamism in frontier fields like AI continues to strengthen. From January to February, patent authorizations related to AI grew by 26.1 percent year on year.
Driven by consumption-boosting policies and the Spring Festival holiday, the consumer market has shown steady growth this year.
From January to February, consumer spending increased by 3.8 percent year on year.
Payment data reflecting consumption activity among small and micro businesses showed a 5.5-percent year-on-year increase in payment amounts during the same period, with offline consumption remaining robust.
