The National Development and Reform Commission (NDRC) has outlined its latest steps to boost domestic demand and stabilize investment for the second half of the year, following the directives of the late July Politburo meeting. At a press conference on July 31, the NDRC detailed plans to implement specific measures for the "Six Networks" 鈥?water, power grids, computing networks, new communications, urban underground pipelines, and logistics 鈥?a key focus for driving economic growth.
The NDRC emphasized a unified national approach, integrating targets, solutions, and practical conditions. A key priority is removing bottlenecks in hardware connectivity, standard alignment, information sharing, and market access, while enhancing sustainable service operations. An NDRC official, Jiang Yi, stressed that the computing network buildout must be orderly, avoiding a chaotic rush, and should be science-based, reliable, green, and cost-effective.
To support these efforts, the NDRC, alongside other agencies, is drafting an implementation plan for the 2026-2030 expansion of domestic demand. This includes expanding vocational training, boosting household incomes, and accelerating the issuance and use of special bonds and a new 800 billion yuan policy-based financial tool. The goal is to turn planning blueprints into concrete projects, with a strong push for construction during the peak third-quarter period.
On the investment front, high-tech and emerging sectors are showing strong momentum. In the first half, high-tech industry investment rose 4.6%, with information services up 15.5%. Intellectual property product investment grew 9.4%, now accounting for 13.8% of total investment. The NDRC plans to speed up major project starts, including those in the 15th Five-Year Plan, while fostering a better environment for private investment, notably in the computing network buildout, which is expected to attract 4 trillion yuan in new direct investment and create huge opportunities for private capital.
On the consumption front, service retail sales grew 5.3% in the first half, with smart wearables like smart glasses seeing over 100% growth and high-efficiency appliances jumping over 30%. The NDRC will focus on boosting consumer incomes, tapping into service consumption potential, and expanding supply of next-generation smart products like AI phones, PCs, and robots. The agency also noted that despite global uncertainties and external shocks, China's economy remains resilient, with the IMF and World Bank recently upgrading China's growth forecast by 0.2 percentage points, reflecting global confidence.