Recently, the groundbreaking ceremony for the Dexiang Manganese-Based New Energy Materials Production Project was held. The project is invested and constructed by Fujian Dexiang New Materials Co., Ltd., located in Xinluo District, Longyan City, Fujian Province. The first phase covers a planned land area of 299.82 mu, with a total investment of 1.2 billion yuan. Upon completion, the first phase will have an annual production capacity of 100,000 tons of high-purity manganese sulfate, 20,000 tons of trimanganese tetroxide, and by-products. The products can be applied in energy storage fields such as cathode materials for lithium-ion batteries, sodium-ion batteries, and aqueous zinc-ion batteries. Once the project reaches full production capacity, it is expected to achieve an annual output value of approximately 1.08 billion yuan, contribute about 160 million yuan in taxes, and provide around 330 jobs.

LICO Materials and Ather Energy have partnered to establish a collection and recycling system for end-of-life lithium-ion batteries from electric two-wheelers in India. Batteries from Ather's EV fleet will be processed at LICO's recycling facility in Karnataka. LICO stated that its recycling technology can recover up to 95% of valuable battery materials, including lithium, nickel, cobalt, graphite and copper. The recovered materials will be supplied back to battery cell manufacturers and automotive OEMs, supporting a circular battery supply chain. The partnership aligns with India's Battery Waste Management Rules, 2022 and is expected to strengthen domestic critical mineral recovery while reducing reliance on imported battery raw materials.

The U.S. government will impose additional Section 301 tariffs on 60 economies, including South Korea, citing their failure to sufficiently adopt and enforce import bans on goods produced with forced labor. For non-exempt Korean products, additional tariffs will be imposed so that the combined rate of the existing most-favored-nation (MFN) tariff and the Section 301 tariff reaches 12.5%. The measure will take effect on July 24, U.S. Eastern Time. However, batteries and a broad range of key battery raw materials are included in the exemption list. According to the final product list released by the Office of the United States Trade Representative (USTR), lithium-ion batteries under HTSUS 8507.60.00 will not be subject to the additional Section 301 tariffs. Among lithium raw materials, lithium carbonate under 2836.91.00 and lithium oxides and hydroxides under 2825.20.00 are also exempt. Major nickel and cobalt raw materials used in the battery supply chain are also included in the exemption list. Exempt nickel products include ores and concentrates under 2604.00.00, mattes under 7501.10.00, oxides and hydroxides under 2825.40.00, nickel sulphate under 2833.24.00, and unwrought non-alloyed and alloyed nickel under 7502.10.00 and 7502.20.00. Exempt cobalt products include ores and concentrates under 2605.00.00, oxides and hydroxides under 2822.00.00, cobalt sulphate under 2833.29.10, cobalt carbonate under 2836.99.10, as well as cobalt mattes, intermediate products, powders, and unwrought metal.

[SMM Analysis: New Battery Consumption Tax Policy Takes Effect: Sodium-Ion Batteries Exempt, Lithium Batteries Taxed, Sodium-Ion Batteries Enter a "Tax Exemption Dividend Period"] SMM, July 21: The Ministry of Finance, the General Administration of Customs, and the State Taxation Administration recently jointly issued an announcement on the adjustment of the battery consumption tax policy. For the first time, lithium-ion batteries and similar products are included in the scope of consumption tax collection, while sodium-ion batteries, solid-state batteries, fuel cells, and others are listed in the exemption catalog. This "tax-and-exempt" design has garnered widespread attention across the sodium-ion battery industry chain...

On July 16, the Ministry of Finance, the General Administration of Customs, and the State Taxation Administration jointly issued Announcement No. 20 of 2026, introducing systemic adjustments to the consumption tax policy on certain batteries. This marks the most significant policy revision since the establishment of the battery consumption tax framework in 2015, covering key categories such as lithium-ion batteries, solar cells, sodium-ion batteries, and solid-state batteries. Through a combined mechanism of “tiered tax rates + targeted exemptions + standards-based access,” it addresses the dual objectives of tax regulation and industrial guidance. 1. Lithium-Ion Batteries to Be Taxed First: 2% from September, Rising to 4% in September Next Year According to the announcement, starting September 1, 2026, conventional battery categories such as lithium-ion batteries will be subject to a 2% consumption tax rate, which will be raised to 4% from September 1, 2027. Lithium-ion batteries are the category most broadly affected by the new rules, with power batteries accounting for the vast majority of their shipments. Assuming an average battery cell price of 0.5 yuan/Wh and annual shipments of 1,000 GWh, a 2% tax rate translates to an additional annual tax burden of approximately 10 billion yuan at the cell level. At present, gross margins of power battery cell enterprises are generally compressed to around 10% or even lower, making this cost increase significant. In terms of pass-through, top-tier players, leveraging economies of scale and stronger bargaining power, are expected to pass on part of the tax burden to downstream automakers. However, second- and third-tier enterprises have limited room to negotiate, so their profit margins may come under further pressure, potentially intensifying industry divergence. After the tax rate rises to 4% in 2027, cost pressure will be significantly magnified, likely accelerating the rationalization of inefficient capacity. 2. Targeted Tax Exemptions for Frontier Technologies: Sodium-Ion and Solid-State Batteries Enjoy a “Policy Window” The announcement specifies that from September 1, 2026 to December 31, 2028, sodium-ion batteries, solid-state batteries, fuel cells, as well as perovskite, tandem, and gallium arsenide solar cells in the PV sector will be exempt from consumption tax. This arrangement directly targets frontier technology pathways that have not yet been industrialized on a large scale but hold strategic significance: Sodium-ion batteries are at a critical stage of transitioning from demonstration applications to large-scale mass production. The exemption will effectively lower the initial comprehensive production costs, narrow the cost gap with lithium-ion batteries, and accelerate their penetration in applications such as low-speed vehicles. Solid-state batteries, as the core direction for next-generation power batteries, remain in the R&D and small-batch trial production stage transitioning from semi-solid to all-solid-state. The tax exemption helps reduce trial-and-error costs and accelerate industrialization. The core logic is: tax mature technologies, and exempt frontier technologies from tax. Exempting frontier technologies that are still in the early stages of industrialization reflects a policy orientation of “using tax supplements from mature technologies to support frontier technologies, enabling them to move forward with less burden,” thereby guiding capital and resources toward technological iteration. In the short term, at the initial stage of the lithium battery consumption tax, cost side, battery cell enterprises will be under pressure and will manage by raising prices or optimizing their product mix. This cost increase is particularly erosive to the profits of second- and third-tier enterprises, and some marginal capacity may face break-even pressure. In terms of production scheduling pace, ahead of the September 1 start date, battery cell manufacturers may exhibit an “installation rush” effect involving concentrated shipments and advance stockpiling, potentially driving August production figures sharply higher in the short term, while September production schedules will face a phased pullback. In terms of price pass-through, top-tier players still have some cushion for negotiation, but smaller cell makers will face greater resistance in passing the tax burden to automakers and will need to absorb most of the costs themselves. In terms of product mix, production scheduling priorities for low-margin categories may be passively downgraded, accelerating the industry reshuffle. In the long term, after the tax rate rises to 4%, industry-wide cost pressure will be significantly magnified. Combined with the scheduled expiration of the tax exemption window for frontier technologies at the end of 2028, whether sodium-ion and solid-state batteries can achieve cost reductions at scale by then will become a critical factor in determining their competitiveness. The policy sends a very clear signal: the state’s regulatory logic for the battery industry is shifting from “universal support” to “differentiated guidance,” with technology leaders reaping greater policy dividends.

SMM July 18 news: In the metals market: Last Friday night, base metals on the domestic market nearly all rose. SHFE copper gained 0.15%, SHFE aluminum rose 0.22%, SHFE lead added 0.69%, SHFE zinc fell 0.85%, and SHFE tin jumped 1.57%. SHFE nickel slipped 0.28%. In addition, the most-traded alumina futures climbed 1.64%, and the most-traded aluminum alloy futures rose 0.67%. Last Friday night, ferrous metals mostly fell. Stainless steel dropped 0.3%, iron ore declined 0.46%, rebar lost 0.35%, and hot-rolled coil edged down 0.36%. For coking coal and coke: the most-traded coking coal futures gained 1.34%, and the most-traded coke futures added 0.56%. Last Friday night in overseas markets, LME base metals generally fell. LME copper dipped 0.11%, LME aluminum lost 0.33%, LME lead rose 0.96%, LME zinc fell 1.48%, LME tin gained 0.73%, and LME nickel dropped 0.38%. Last Friday night, in precious metals : COMEX gold rose 0.77%, but for the week, COMEX gold fell 2.2%. COMEX silver edged up 0.06%, with the contract posting a second straight weekly decline, down 6.56% for the week. Last Friday night, the most-traded SHFE gold contract gained 0.67%, but it fell for a second consecutive week, down 3.07% for the week; the most-traded SHFE silver contract rose 1.05%, but it fell for a second straight week, dropping 7.85% for the week. Data from the World Gold Council showed that gold prices weakened in June, erasing earlier gains, and H1 ended lower. Despite outflows in June, Chinese gold ETFs still saw significant inflows in H1, lifting their total assets under management (AUM) slightly to 243 billion yuan, while total holdings increased by 29 mt to 277 mt. In June, Chinese gold ETFs saw outflows of 15 billion yuan, their weakest monthly performance on record. (Source: Wallstreetcn APP) As of 8:45 am on July 18, the closing prices from last Friday’s overnight session: Macro front Domestic side: [Ministry of Finance and two other departments adjust consumption tax policies on certain batteries] On July 17, the Ministry of Finance announced that, starting from September 1, 2026, a consumption tax of 2% will be levied on mercury-free primary cells, nickel-metal hydride batteries (also known as NiMH batteries), lithium primary cells, lithium-ion batteries, and vanadium redox flow batteries; starting from September 1, 2027, the tax rate on these battery products will rise to 4%. Starting from April 1, 2027, a consumption tax of 2% will be imposed on solar cells; starting from April 1, 2028, the tax rate on solar cells will be 4%. From September 1, 2026 to December 31, 2028, consumption tax will be exempted for sodium-ion batteries, solid-state batteries, fuel cells, as well as for perovskite cells, tandem cells, and gallium arsenide cells among solar cells. [MIIT: Automotive Producers Required to Firmly Resist Irrational Competition and Strengthen Product Testing, Verification, and Safety Assessment] On July 17, the Equipment Industry Department I of the Ministry of Industry and Information Technology (MIIT) convened a symposium for key automotive producers, deploying efforts to further regulate competition order in the automotive industry, enhance production conformity and quality safety levels of automotive products, and carry out key tasks such as safety risk and hazard investigations and inspections and supervision of automotive products. (from Wall Street CN app) [Ministry of Housing and Urban-Rural Development: Advance Urban Renewal with High Quality and Intensify the Implementation of the Renovation of Old Urban Residential Communities] On July 17, the Party Leadership Group of the Ministry of Housing and Urban-Rural Development held an expanded study session of the theoretical study center group. The meeting stressed that carrying out urban work in the new era and on the new journey is a glorious mission with arduous tasks. It called for advancing urban renewal with high quality, promoting urban governance with high efficiency, and building “four-good” construction of good houses, good residential communities, good neighborhoods, and good urban districts to high standards. It emphasized intensifying efforts to implement livelihood-related projects such as the renovation of old urban residential communities, the construction of complete communities, the improvement of property service quality, the environmental remediation of back alleys and lanes, the development of pocket parks, and the opening and sharing of green spaces. It called for making great efforts to solve the most pressing difficulties and problems faced by the people, such as the installation of elevators, parking, and charging, striving to make people’s urban life more convenient, comfortable, and beautiful, and seizing the momentum to open up a new landscape in the modernization and construction of people-oriented cities. (China Construction News) [The “Several Measures to Further Promote the Development of ‘AI+Manufacturing’ in Shanghai” Issued] The Shanghai Municipal Commission of Economy and Informatization has issued the “Several Measures to Further Promote the Development of ‘AI+Manufacturing’ in Shanghai.” It mentions promoting breakthroughs in key and core technologies. Support will be provided for breakthroughs in technologies such as knowledge graph integration and text-to-3D parts design, focusing on frontier fields including industrial vertical large models, AI programming large models, physical AI, industrial agents, industrial software, and the industrial Internet, with a maximum support of 20 million yuan. For the R&D of comprehensive security solutions for industrial large models and agents, a maximum support of 10 million yuan will be provided. The measures aim to reduce the cost of using intelligent elements. Industrial intelligent computing cloud platforms are encouraged to provide manufacturing enterprises with low-code agent development platforms and free trials of industrial agents, distribute platform token trial coupons, and introduce computing power benefit packages for enterprises. Support will be given for renting non-affiliated intelligent computing resources to carry out the R&D and application of industrial large models and industrial agents, with a maximum subsidy of 40 million yuan. Support will be provided for the deployment of industrial vertical applications by calling on third-party large models or adopting privately deployed third-party large models, with a maximum subsidy of 5 million yuan. Support will also be given for the procurement of high-quality corpora to facilitate the R&D and application of industrial vertical large models, industrial AI agents, etc., with a maximum subsidy of 5 million yuan. (Jin10 Data App) In terms of the US dollar: Last Friday overnight, the US dollar index rose 0.03% to 100.76. On the weekly chart: the US dollar index fell, dropping 0.2% for the week. According to the latest survey, US consumer sentiment surged to a five-month high in early July, boosted by falling gasoline prices. The survey results released on Friday showed that the University of Michigan's preliminary consumer sentiment index for July rose to 54.4 from 49.5 in June, compared to market expectations of 51. From June through early July, gasoline prices fell steadily, effectively easing household budget pressures. However, renewed tensions in the Middle East have since begun to push oil prices higher and clouded the inflation outlook further. The survey's coverage period was from June 23 to July 13, though the report noted that more than 70% of responses were completed before the US carried out airstrikes on Iran in early July. The improvement in consumer confidence was broad-based across age and income groups as well as political party affiliations. (from Wall Street News App) US housing starts surged in June after a sharp decline in the previous month, driven primarily by a rebound in apartment construction. Official data released on Friday showed that housing starts increased 19% to a 1.43 million annualized rate, the highest level since March and exceeding economists' expectations. Multifamily housing starts jumped more than 76% to a 532,000 annualized rate, following a nearly 40% plunge the previous month. Meanwhile, single-family housing starts fell 0.2%, declining again after builders experienced an overall sluggish spring. The rebound in multifamily construction underscores the month-to-month fluctuations in the data, especially in the apartment sector. However, high home prices and high mortgage rates have been suppressing demand for single-family homes, and these factors may also be supporting apartment demand. At the same time, single-family homebuilders have generally been facing high inventory and weak demand. This has forced many builders to entice buyers through sales incentives. Simona Mocuta, chief economist at State Street Global Advisors, said the US dollar has been supported this year by safe-haven inflows and market pricing of US Fed rate hikes, but these factors have already been priced into the exchange rate, so the dollar is set to resume its multi-year depreciation trend. Her baseline forecast is that the US Fed will keep interest rates unchanged for the entire year, but Mokuta says the risk of one rate hike remains. Even if a hike occurs, it has already been priced into the US dollar and would thus have little additional impact; if a hike fails to materialize, it would weaken the US dollar. As concerns over the US fiscal outlook persist, the US dollar will return to its long-term depreciation trend. (from Wallstreetcn APP) On the macro front: This week will see the release of China's one-year loan prime rate as of July 20, Germany's June PPI MoM, Canada's June CPI MoM, US June Conference Board Leading Index MoM, Switzerland's June trade balance, UK ILO unemployment rate for the three months to May, UK June public sector net borrowing, UK June unemployment rate, UK June claimant count change, Germany's July ZEW economic sentiment index, Eurozone's July ZEW economic sentiment index, US ADP employment change for the week ending July 4, UK June CPI MoM, UK June RPI MoM, China's June SWIFT RMB global payment share, Australia's seasonally adjusted unemployment rate for June, UK July CBI industrial orders balance, Eurozone's ECB deposit facility rate as of July 23, Eurozone's ECB main refinancing rate as of July 23, Canada's May retail sales MoM, US initial jobless claims for the week ending July 18, Eurozone's July consumer confidence index flash estimate, UK July GfK consumer confidence index, Japan's June core CPI YoY, Germany's August GfK consumer confidence index, UK June seasonally adjusted retail sales MoM, France's July manufacturing PMI flash estimate, Germany's July manufacturing PMI flash estimate, Eurozone's July manufacturing PMI flash estimate, UK July manufacturing PMI flash estimate, UK July services PMI flash estimate, US July S&P Global manufacturing PMI flash estimate, US July S&P Global services PMI flash estimate, and US June new home sales annualized, among other data. Additionally, this week: The ECB will announce its interest rate decision; ECB President Lagarde will hold a press conference on monetary policy. On the crude oil front: Last Friday, both crude oil futures surged in overnight trading, with WTI up 4.46% and Brent up 4.78%. On the weekly chart: WTI futures posted a second straight weekly gain, rising 14.51% for the week; Brent futures also rose for a second consecutive week, jumping 16.12% for the week. On Friday, the Middle East situation further deteriorated, and escalating geopolitical tensions drove crude oil sharply higher. Data released by international services provider Kpler on the 17th showed that vessel traffic through the Strait of Hormuz continued to weaken on the 16th, with the confirmed number of ships passing through the strait that day dropping to 8, the lowest level in nearly three weeks. (From Wallstreetcn APP) IEA Executive Director Birol Fatih warned on the 16th that if oil shipments via the Strait of Hormuz are not restored within weeks, global energy security will be in jeopardy. According to UK sources, Birol said at an event held by the Council on Foreign Relations that oil supply security remains a key concern, and if the situation in the Strait of Hormuz does not improve in the coming weeks, the world should be worried. He said the measures taken by some countries "cannot last forever"; even if the US significantly increases oil production, it will be far from enough to offset the supply gap caused by the blockage in the Strait of Hormuz. (CCTV News) Oilfield services company Baker Hughes said US energy firms this week added oil and natural gas rigs for the fifth consecutive week, the first such streak since early June, bringing the total count to its highest since April 2025. As an early indicator of future output, the total rig count rose by 7 to 588 in the week to July 17. Baker Hughes said this week's increase pushed the total rig count up by 44 rigs, or 8%, compared to the same period last year. Baker Hughes said oil rigs rose by 7 to 452 this week, the highest since May 2025; natural gas rigs were unchanged at 126, and miscellaneous rigs were unchanged at 10. (From Wallstreetcn APP) Notably: NYMEX WTI August crude oil futures will be affected by contract rollover, with the final floor trading completed at 2:30 on July 22 and the final electronic trading completed at 5:00 AM. Please pay attention to the exchange's expiry and rollover announcements to manage risks. In addition, for some trading platforms, the WTI contract expiry is typically one day earlier than the official NYMEX expiry; please be attentive. Recommended Reading:

[SMM Analysis: In-Depth Analysis of Anode Prelithiation Technology Panorama and Industrialisation Progress] Anode prelithiation is a key technology that pre-supplements active lithium into silicon-based anodes to compensate for the irreversible capacity loss during the initial charge-discharge cycle, aiming to overcome the industrialisation bottleneck of low initial coulombic efficiency and poor cycling stability of silicon-based anodes.

The National Bureau of Statistics (NBS) released data showing that according to preliminary estimates, China's gross domestic product (GDP) in H1 reached 69,570.4 billion yuan, up 4.7% YoY at constant prices. By industry, value-added of the primary sector was 3,152.2 billion yuan, up 3.7% YoY; that of the secondary sector was 25,047.3 billion yuan, up 3.9%; and that of the tertiary sector was 41,370.9 billion yuan, up 5.2%. By quarter, GDP in Q1 grew 5.0% YoY, and Q2 grew 4.3%. On a QoQ basis, GDP grew 0.9% in Q2. Overall, the national economy performed within a reasonable range in H1, new quality productive forces were nurtured and strengthened, and high-quality development advanced toward greater innovation and excellence. At the same time, it should be noted that there are many external factors of instability and uncertainty, the contradiction of strong supply and weak demand in China is prominent, and the foundation for economic improvement still needs to be consolidated. In the next stage, China will adhere to the principle of seeking progress while maintaining stability, improving quality and efficiency, intensify counter-cyclical and cross-cyclical adjustments, continue to expand domestic demand and optimize supply, optimize new drivers and revitalize existing assets, strive to build a strong Chinese market, accelerate the cultivation and growth of new growth drivers, redouble efforts to stabilize employment, enterprises, markets, and expectations, and promote effective improvement in the quality and reasonable growth of the quantity of the economy. H1 Economy within Reasonable Range; New Growth Drivers Grow Rapidly In H1, under the strong leadership of the Central Committee of the Communist Party of China with Comrade Xi Jinping at its core, various regions and departments earnestly implemented the decisions and arrangements of the Party Central Committee and the State Council, adhered to the general principle of seeking progress while ensuring stability, fully and faithfully applied the new development philosophy, accelerated the formation of a new development pattern, focused on promoting high-quality development, effectively implemented more proactive macro policies, and the economy withstood pressure and performed within a reasonable range; production supply grew relatively fast, the employment situation remained generally stable, prices rose mildly, foreign trade saw sound growth momentum, new growth drivers grew rapidly, people's livelihoods were effectively ensured, and the resilience of development was continuously demonstrated. According to preliminary estimates, China's GDP in H1 reached 69,570.4 billion yuan, up 4.7% YoY at constant prices. By industry, value-added of the primary sector was 3,152.2 billion yuan, up 3.7% YoY; that of the secondary sector was 25,047.3 billion yuan, up 3.9%; and that of the tertiary sector was 41,370.9 billion yuan, up 5.2%. By quarter, Q1 GDP grew 5.0% YoY, and Q2 grew 4.3%. On a QoQ basis, GDP grew 0.9% in Q2. I. Bumper Summer Grain Harvest, Steady Growth in Livestock Farming In H1, value-added of agriculture (planting) grew 3.6% YoY. National summer grain output totaled 150.75 million mt, an increase of 1 million mt, or 0.7%, from the previous year. In H1, the output of pork, beef, mutton, and poultry reached 50.5 million tonnes, up 4.3% YoY. Within this, pork output was up 3.3% and poultry up 9.4%, while beef output was down 1.0% and mutton down 3.9%. Milk output increased 2.4%, and egg output declined 2.2%. At the end of Q2, the pig inventory stood at 424.91 million head, up 0.1% YoY; in H1, the pig slaughter was 372.46 million head, up 1.7%. 2. Industrial Production Grew Relatively Fast, and Equipment Manufacturing and High-Tech Manufacturing Performed Well In H1, the value-added of industrial enterprises above designated size increased 5.4% YoY. By sector, mining value-added rose 3.6% YoY, manufacturing was up 5.6%, and the production and supply of electricity, heat, gas, and water grew 5.5%. Equipment manufacturing value-added increased 9.3% YoY, and high-tech manufacturing value-added grew 13.3%, outpacing the overall growth of industrial enterprises above designated size by 3.9 and 7.9 percentage points, respectively. By ownership, the value-added of state-controlled enterprises was up 4.3% YoY; joint-stock enterprises grew 5.9%, and enterprises with investment from foreign investors and those from Hong Kong, Macao, and Taiwan rose 3.2%; private enterprises increased 4.6%. By product, the production of 3D printing equipment, lithium-ion batteries, and industrial robots rose 48.5%, 39.3%, and 28.0% YoY, respectively. In June, the value-added of industrial enterprises above designated size increased 5.3% YoY, 0.8 percentage points faster than in May, with a MoM growth of 0.76%. In June, the manufacturing PMI stood at 50.3%, up 0.3 percentage points MoM; the expectations index for production and business activities was 54.3%, up 0.4 percentage points. In the first five months, total profits of industrial enterprises above designated size reached 3,144 billion yuan, up 18.8% YoY. 3. Services Grew Steadily, and Modern Services Developed Well In H1, the value-added of services increased 5.2% YoY. Within this, the value-added of leasing and business services, information transmission, software and IT services, financial services, and accommodation and catering grew 11.9%, 10.7%, 6.7%, and 5.0%, respectively. In June, the National Services Production Index rose 4.7% YoY, 0.3 percentage points faster than in May. Within this, the production indices of leasing and business services, information transmission, software and IT services, and financial services rose 9.7%, 9.6%, and 5.8%, respectively. In the first five months, the business revenue of service enterprises above designated size increased 6.6% YoY. In June, the Services Business Activity Index stood at 50.4%, up 0.1 percentage points MoM; the Services Business Activity Expectations Index was 56.0%, up 0.6 percentage points. Among these, the Business Activity Indices for sectors such as telecommunications, broadcasting, television and satellite transmission services, internet software and information technology services, monetary and financial services, and insurance remained in the high prosperity range of 55.0% and above. 4. Consumer Market Continued to Expand, with Rapid Growth in Service Retail Sales In H1, the total retail sales of consumer goods and services grew 2.7% YoY, of which service retail sales rose 5.3%, and goods retail sales grew 1.1%. Within service retail sales, those of communication and information services, tourism consulting and leasing services, and cultural, sports, and leisure services grew rapidly. In H1, total retail sales of consumer goods reached 24,872.2 billion yuan, up 1.3% YoY. By location of business units, urban retail sales of consumer goods were 21,550.6 billion yuan, up 1.2% YoY; rural retail sales of consumer goods were 3,321.6 billion yuan, up 2.5%. By consumption type, retail sales of goods were 22,046.7 billion yuan, up 1.1% YoY; and catering revenue was 2,825.5 billion yuan, up 2.8%. Sales of basic living goods and some upgraded goods grew relatively fast. Retail sales of grain, oil and foodstuffs, clothing, footwear, hats, textiles, and communication equipment by enterprises above the designated size grew 7.4%, 6.7%, and 14.4% YoY, respectively. In June, the total retail sales of consumer goods reached 4,269.1 billion yuan, up 1.0% YoY, compared to a 0.6% decline in the previous month, and an increase of 0.38% MoM. In H1, China's online retail sales of goods and services totaled 10,071.5 billion yuan, up 5.2% YoY. Of this, online retail sales of goods were 6,429.6 billion yuan, up 4.8%, and online retail sales of services were 3,641.9 billion yuan, up 6.0%. 5. Fixed Asset Investment Declined, While Investment in Intellectual Property Products Accelerated In H1, China's fixed asset investment (excluding rural households) was 22,637 billion yuan, down 5.7% YoY; when excluding real estate development, it fell 2.7%. Among this, investment in intellectual property products rose 9.4% YoY, accelerating by 1.5 percentage points compared to Q1. By sector, infrastructure investment fell 2.4% YoY, manufacturing investment declined 1.2%, and real estate development investment dropped 18.0%. The floor space of newly built commercial buildings sold nationwide was 401.4 million m², down 11.6% YoY; the sales value of newly built commercial buildings was 3,794.5 billion yuan, down 13.6%. By industry, investment in the primary industry grew 0.9% YoY, in the secondary industry declined 1.1%, and in the tertiary industry fell 8.4%. Private investment dropped 8.5% YoY; excluding real estate development, private investment fell 4.9%. Investment in high-tech industries grew 4.6% YoY. Specifically, investment in aviation, spacecraft, and equipment manufacturing, computer and office equipment manufacturing, and information services rose 23.3%, 8.1%, and 15.5% YoY, respectively. In June, fixed asset investment (excluding rural households) fell 0.37% MoM. VI. Rapid Growth in Goods Imports and Exports, with Continued Optimization of Trade Structure In H1, total goods imports and exports reached 25,468.6 billion yuan, up 16.9% YoY. Of this, exports were 14,731.4 billion yuan, up 13.4%, and imports were 10,737.2 billion yuan, up 22.1%. Imports and exports to countries jointly building the Belt and Road grew 14.8%. Imports and exports by private enterprises grew 17.0%, accounting for 57.0% of the total. Exports of mechanical and electrical products rose 20.1%, accounting for 63.5% of total exports. In June, total imports and exports reached 4,782.3 billion yuan, up 24.2% YoY, 7.3 percentage points higher than the previous month. Of this, exports were 2,820.7 billion yuan, up 20.8%, and imports were 1,961.6 billion yuan, up 29.4%. VII. Mild Rise in Consumer Prices, YoY Increase in Industrial Producer Prices In H1, the national consumer price index (CPI) rose 1.0% YoY. By category, prices of food, tobacco, alcohol and dining out fell 0.2% YoY; clothing prices rose 1.6%; housing prices fell 0.2%; household goods and services prices rose 1.9%; transportation and communication prices rose 1.8%; education, culture and recreation prices rose 1.2%; healthcare prices rose 2.0%; and prices of other goods and services rose 11.6%. Within food, tobacco, alcohol and dining out, pork prices fell 13.4%, grain prices fell 0.3%, fresh fruit prices rose 1.5%, and fresh vegetable prices rose 4.1%. In June, the national CPI rose 1.0% YoY and fell 0.3% MoM. In H1, the core CPI, which excludes food and energy prices, rose 1.2% YoY, with the June core CPI up 1.0% YoY. In H1, the national industrial producer EXW prices rose 1.5% YoY. Specifically, in June, they rose 4.1% YoY, with the growth rate expanding by 0.2 percentage points from the previous month, and fell 0.3% MoM. In H1, the national industrial producer purchase prices rose 2.4% YoY, with a 6.4% YoY increase in June and a 0.2% MoM decline. VIII. Generally Stable Employment Situation, Decline in Urban Surveyed Unemployment Rate In H1, the averaged national urban surveyed unemployment rate was 5.2%. In June, the rate stood at 5.0%, down 0.1 percentage points from the previous month. The surveyed unemployment rate for the local registered labor force was 5.0%; for the non-local registered labor force, it was 4.9%, including 4.8% for the non-local agricultural registered labor force. The surveyed urban unemployment rate in 31 major cities was 5.0%, down 0.1 percentage point from the previous month. The average weekly working hours of employees in enterprises nationwide was 48.2 hours. At the end of Q2, the number of rural migrant workers totaled 192.27 million, up 0.5% YoY. IX. Household Income Grew Steadily, with Rural Income Growth Outpacing Urban In H1, the per capita disposable income of residents nationwide was 22,981 yuan, a nominal increase of 5.2% YoY and a real increase of 4.2% after deducting price factors. By permanent residence, the per capita disposable income of urban residents was 30,126 yuan, a nominal increase of 4.4% YoY and 3.4% in real terms; for rural residents, it was 12,699 yuan, a nominal increase of 6.4% YoY and 5.5% in real terms. By income source, the per capita wage income, net operating income, net property income, and net transfer income of residents nationwide increased nominally by 5.3%, 6.5%, 1.1%, and 5.8%, respectively. In H1, the ratio of per capita disposable income of urban to rural residents (with rural income as 1) was 2.37, narrowing 0.05 YoY. Overall, in H1, the national economy operated within a reasonable range, new quality productive forces were cultivated and strengthened, and high-quality development advanced toward new and higher levels. However, it should also be noted that there are numerous external instabilities and uncertainties, the contradiction of strong supply and weak demand in the domestic market is prominent, and the foundation for economic recovery still needs to be consolidated. In the next stage, we must adhere to the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, persist in seeking progress while maintaining stability, improving quality and efficiency, intensify counter-cyclical and cross-cyclical adjustments, continue to expand domestic demand and optimize supply, improve incremental growth and revitalize existing resources, focus on building a strong domestic market, accelerate the cultivation and strengthening of new growth drivers, and step up efforts to stabilize employment, enterprises, markets, and expectations, thereby promoting effective qualitative improvement and reasonable quantitative growth of the economy. Recommended Reading:

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