China's economy has demonstrated a stable and positive trajectory at the start of the 15th Five-Year Plan (2026-30) period, characterized by robust growth in the real economy, emerging industries and green development, said the State Taxation Administration.

Hu Jinglin, head of the STA, highlighted that fiscal big data revealed four prominent features of the current economic operation: a stronger real economy, booming new quality productive forces, improved profitability and an accelerated green transition.

"The fundamental economic base is becoming more solid," Hu said, adding that the sales revenue of industrial enterprises grew 7.1 percent year-on-year in the first half, with manufacturing sales up 7.3 percent.

The momentum of new quality productive forces remains robust. Sales revenue from equipment manufacturing, information technology and tech services accounted for 23.5 percent of total corporate sales revenue, the administration said.

Meanwhile, corporate profitability has been optimized, with the declared profits of 1 million key tax-source enterprises surging 12.8 percent. Green development is also accelerating, evidenced by a 17.1 percent increase in clean energy power generation sales and a 38.9 percent jump in lithium battery manufacturing.

Hu said China's opening-up has demonstrated strong resilience, adding that the number of active foreign-invested taxpaying entities surged by 10.9 percent year-on-year, while their declared profits increased by 4.5 percent. Additionally, export tax rebates processed for enterprises grew by 7.7 percent, reflecting a steady momentum in foreign trade and foreign capital utilization.

Reflecting this steady economic expansion, China's tax and fee revenue reached 16.7 trillion yuan ($2.47 trillion) in the January-June period. Of this, tax revenue exceeded 10 trillion yuan, representing a 4.9 percent year-on-year increase, closely coordinating with broader economic growth, Hu said.

To further stimulate high-quality development, taxation authorities have intensified efforts to support scientific and technological innovation. Wang Shiyu, chief auditor of the STA, said tax and fee reductions — alongside tax refunds for sci-tech innovation and manufacturing — totaled 1.91 trillion yuan in the first half. This includes nearly 1 trillion yuan in value-added tax credits for advanced manufacturing enterprises and 659.6 billion yuan in deductions for research and development expenses.

"Under the combined effect of tax incentives and other policies, China's long-accumulated innovation potential has been further stimulated," Wang said. This has led to a dual advancement in which traditional industries are rapidly upgrading, while emerging sectors are experiencing explosive growth.

Notably, sales revenue from smart vehicle equipment and drones skyrocketed by 43 percent and 36.2 percent, respectively. The integration of digital industrialization is also deepening, with core digital economy industries seeing an 8.7 percent rise in sales revenue.

Beyond economic growth, tax policies have significantly improved social livelihoods. Tax reductions for special additional personal income tax deductions — such as eldercare, healthcare and education — exceeded 320 billion yuan, benefiting 126 million individuals, an increase of 5.9 percent from the previous year.

In addition, the STA has made significant strides in building a unified national market by rectifying the "invoicing economy" and irregular tax-related investment incentives, Wang said, stressing the administration has cracked down on "shell companies" and fake trade designed to create a false illusion of digital prosperity and illicitly obtain local subsidies.

During the first half, the STA identified 1.29 million shell enterprises and facilitated the deregistration of nearly 700,000 such entities. Furthermore, 833 non-compliant tax-related documents for investment promotion were abolished or amended across various regions.