Expert says China's economic development 'very positive' in H1 2026

China’s economic development was ‘very positive’ in the first half (H1) of 2026, a very difficult year for many economies, according to a leading Australian expert on China’s economy. In a recent interview with Xinhua, Hans Hendrischke, professor of Chinese business and management at the University of Sydney Business School, said China achieved very good results during the period with a stable economy and rising exports. China’s Gross Domestic Product (GDP) grew 4.7 percent year on year (yoy) in H1 2026, according to data from China’s National Bureau of Statistics on Wednesday (15/7). The positive result is an indicator of careful macroeconomic planning behind China’s economic growth, with the growth rate remaining within the target range, Hendrischke said. Hendrischke was impressed by the strength of China’s export growth, saying that the growth was very strong. China’s foreign trade surged 16.9 percent (yoy) in H1 2026 to 25.47 trillion yuan, according to data from the General Administration of Customs of China. Of that total, exports rose 13.4 percent (yoy) to 14.73 trillion yuan, maintaining growth for 11 consecutive quarters, while imports increased 22.1 percent to 10.74 trillion yuan, or 8.7 percentage points higher than the export growth rate, facilitating a more balanced trade development. Hendrischke said China’s exports have grown particularly in areas with solid prospects, including high technology, advanced manufacturing, artificial intelligence-related industries, and green energy. ‘So, the fact that China has been able to enter those markets (and) lead in those markets is important for its future role,’ he said. Hendrischke believes China is a driver of global economic growth thanks to its solid economic performance and stable supply chains, while also developing into a reliable partner in terms of both technology and trade. ‘For future technical growth, for example, China’s role in renewable energy is something that will become very important for the global economy,’ he said. Hendrischke also said that, beyond the more visible fields of technology and trade, China is playing an increasingly important role in international financing and institutional development. ‘China is now a major partner for financing in developing countries,’ he said. ‘(In) another area, which is easy to overlook, China is increasingly an institutional partner in terms of setting standards, creating procedures, creating openness, for example, for digital interaction, for AI.’ Looking ahead to the second half (H2) of this year, Hendrischke said he remains optimistic about China’s economic prospects. ‘China will grow and will perform well in H2 if nothing unexpected happens.’ Speaking about China-Australia economic and trade cooperation, Hendrischke said the two economies are complementary. China is increasingly relying on its supply chains, technology exports and high-tech development, while Australia is a resource supplier, he said. ‘So, Australia benefits greatly from having a trading partner, a business partner like China,’ he added.