New drivers from innovative production capacities contribute to steady improvement of Chinese economy: economists

New driving forces from innovative production capacities had contributed significantly to the steady improvement of the Chinese economy in the first half of 2024, experts said after the release of official data on the nation's economic performance in the first six months on Monday.

Data from the country's National Bureau of Statistics showed that the gross domestic product (GDP) grew 5 percent year on year in the first six months of the year, reaching nearly 62 trillion yuan, or about 8.65 trillion U.S. dollars.

"In the first half of the year, China's economy continued its trend of stable growth and steady recovery. Particularly notable were advancements in industrial added value, service consumption, foreign trade exports, manufacturing investment, and the development of high-tech industries. The emergence of new quality productive forces from innovative production capacities contributed to a strong overall economic performance, indicating a promising direction towards new growth," said Huang Hanquan, head of the Academy of Macroeconomic Research affiliated with China's National Development and Reform Commission (NDRC).

Consumption, domestic investment and foreign trade remained the three major engines driving China's economic growth, according to the data.

Boosted by supportive policies, retail sales of consumer goods rose 3.7 percent from a year ago. Services consumption stood out as a bright spot.

Fixed-asset investment went up by 3.9 percent on a yearly basis in the first six months. In particular, investment in high-tech industries showed robust growth, up by 10.6 percent.

In terms of foreign trade, the volume jumped 6.1 percent year on year during the same period. The trade structure continued to improve, with foreign trade by private enterprises up 11.2 percent year on year.

Wei Qijia, a research fellow with the State Information Center, also an NDRC affiliation, believed high technologies have forged new growth drivers that play an increasingly important role in the overall economic performance.

"Certain industries employing advanced technologies have shown significant improvements in indicators such as investment and others. For instance, new growth points arising from the energy conservation and carbon reduction sectors have emerged. These industries are increasingly playing a crucial role in stabilizing the overall economy," said Wei.

New drivers from innovative production capacities contribute to steady improvement of Chinese economy: economists

A high-level mediation team from the African Union (AU) Commission has been dispatched to Juba, capital of South Sudan, to try to ease the rising tensions between President Salva Kiir and First Vice President Riek Machar, and help resolve the current political crisis in the country.

Riek Machar and several senior officials have been detained since clashes erupted in January between the South Sudan People's Defense Forces and the opposition fighters.

Machar was accused of instigating violence in Nasir in the northern part of the country.

The mediation team says it plans to engage Machar, but that meeting is yet to take place.

The AU is urging South Sudanese political leaders to resolve the current disagreement through dialogue.

Machar heads the largest opposition group that has an armed wing in the country, known as SPLM/A-IO.

South Sudan's government says it's still investigating Machar for being allegedly involved in clashes between government troops and armed civilians affiliated to SPLM/A-IO in Nasir.

"The mandate of the RTGoNU (the Revitalized Transitional Government of National Unity) is simple; that we stop war, we form a revitalized government of national unity so that we return security, sustainable peace in the country," said Martin Elia Lomuro, South Sudan's Minister of Cabinet Affairs.

Meanwhile, Machar's party members are calling on president Kiir to order the release of their leader.

The group argues that the arrest of Machar means the 2018 peace deal which ended five years of violence in the country has partially collapsed.

The government reaffirms its commitment to the implementation of the 2018 peace deal.

It says Mr. Machar is in conflict with the law and that the implementation of the peace deal should not be used as cover to commit crime. However, until now, South Sudanese law enforcement agencies have not charged Machar with any offense in a court of law.

South Sudan, which became independent in 2011, signed a peace deal in 2018 that ended a civil war between forces loyal to Kiir and Machar. Nearly 400,000 people died in the civil war.

Relations between Kiir and Machar, who have dominated South Sudan's politics for decades, remain strained. The clashes and latest political tensions between the two leaders have unsettled many citizens and the international community.

AU dispatches Panel of Wise to address ongoing instability in South Sudan