China's investment shifts toward innovation and new growth drivers

BEIJING, Sept. 16, 2026 /PRNewswire/ -- This is a report from China SCIO

China's investment structure continued to improve in the first eight months of 2026, with capital increasingly flowing into technological innovation, advanced industries, and modern infrastructure, despite a 7.2% year-on-year decline in fixed-asset investment.

Wang Guanhua, spokesperson of the National Bureau of Statistics (NBS) and deputy director general of the Department of Comprehensive Statistics of the NBS, made the remarks at a Tuesday press conference.

Wang said the decline was due to multiple factors, including heat waves, typhoons, and floods that disrupted construction in some regions, while greater external uncertainty and ongoing transition from traditional to new growth drivers at home prompted businesses to take a more cautious approach to investment decisions.

"As the economy transitions from one stage of development to another, investment performance should not be judged simply by its growth rate," she noted. She added that more attention should be paid to the role of investment in supporting economic transformation and upgrading, and its contribution to long-term growth momentum.

Despite the year-on-year decline, China's fixed-asset investment remained substantial at around 29.3 trillion yuan (US$4.33 trillion) in the first eight months. The changing investment mix, Wang added, points to improving investment quality and efficiency and stronger support for high-quality development.

Investment in innovation gains momentum

Investment in intellectual property products rose 9.2% year on year in the first eight months, accelerating by 0.1 percentage point from the first seven months and accounting for 15.2% of total investment, up 2.3 percentage points from a year earlier.

Specifically, investment in computer software and databases grew 10.9%, while research and development investment increased 7.8%. Together, the two areas accounted for more than 95% of investment in intellectual property products.

Such investment helps turn scientific and technological advances into practical applications while supporting industrial upgrading and productivity growth, Wang noted.

Capital flows into new growth engines

High-tech industry investment grew 5.2% year on year in the eight months through August, accelerating for the third consecutive month.

Specifically, investment in specialized electronic materials manufacturing and integrated circuit manufacturing rose 8.5% and 12%, respectively, as demand for artificial intelligence technologies and applications continued to grow.

In addition, investment in lithium-ion battery manufacturing surged 20.6%, fueled by the expansion of the new-energy vehicle industry and strong demand for energy storage. Meanwhile, equipment purchase investment rose 9.3%, accounting for 19.5% of total investment and reflecting the continued impact of China's large-scale equipment renewal program.

Major infrastructure projects gather pace

Investment in modern infrastructure is also gathering pace as major projects get underway in the first year of the 15th Five-Year Plan period (2026-2030).

Cross-regional transportation corridors, major energy and water conservancy projects, new infrastructure, and urban renewal projects are advancing in an orderly manner, providing stronger support for high-quality development, Wang said.

Significant progress has been made in developing the "six networks" infrastructure, covering water, power, computing, next-generation communications, urban pipelines and logistics. In the first eight months, investment in internet and related services grew 42% year on year, while investment in air transportation, water transportation, and electricity supply increased 16.7%, 14.7%, and 12.7%, respectively.

As of the end of June, more than 70 major computing-power corridors had been built around national computing hubs, according to official data.

"In all, China's investment mix is shifting toward new growth drivers and becoming better balanced, with continued improvements in investment quality and returns," Wang said, adding that with various policies continuing to work in concert, the potential of investment will be further unlocked to support high-quality economic and social development. 

SOURCE China SCIO