Summary of Key Points
In the first half of 2026, Beijing's GDP reached 2.64 trillion yuan, growing by 5.4%—outpacing the national average. The added value in the integrated circuit sector soared by 92.1%. Beijing's impressive economic performance is attributed to both its "solid foundation" (a service industry centered on finance and information services, supported by three pillars: headquarters economy, technology services, and financial services) and its "new drivers" (cutting-edge technologies such as integrated circuits and AI). This success is the result of a decade-long effort to transform its industrial structure and decades of scientific research investment. In the future, Beijing, with both a stable economic base and new growth momentum, will continue to be an important driver of China's economic development.
I. Solid Foundation: Finance + Information Services
The foundation of Beijing's economy is its service industry, which accounts for over 87% of GDP, with finance and information services contributing more than 70% of the growth. The following three pillars support this foundation:
1. Headquarters Economy: Beijing is the strongest "money magnet" in China, hosting 47 Fortune Global 500 companies (the highest number for 13 consecutive years, surpassing Tokyo and New York combined). This includes state-owned enterprises like PetroChina and Industrial and Commercial Bank of China, as well as internet giants such as JD.com, Meituan, and ByteDance. The benefits of these headquarters are significant: taxes remain in Beijing (for example, each "billion-dollar building" in the CBD pays over 270,000 yuan in taxes daily), there are many high-paying jobs (creating strong consumer demand among white-collar workers), and critical decision-making is made locally, enhancing resilience to economic fluctuations.
2. Technology Services: The northern part of Haidian has become a hub for internet companies, with major players such as ByteDance (TikTok), Baidu, and Tencent. The needs of China's 1.125 billion internet users—whether watching videos or ordering food delivery—are all counted towards Beijing's economic output. The added value of the information services sector in the first half of the year was 677.4 billion yuan, a growth of 9.4%.
3. Financial Services: Although "Financial Street" is not a physical street, it is home to the central bank, the securities regulatory commission, and headquarters of major banks, making it the national financial decision-making center. The added value of the finance sector in the first half of the year was 480.2 billion yuan (a growth of 10.2%). Beijing also has 481 listed companies with a total market value of 33.4 trillion yuan, and enterprises have raised over 6 trillion yuan in direct financing—demonstrating the vitality of its capital market.
II. A Decade of Transformation: From Wholesale Markets to a Hub for Cutting-Edge Technologies
Beijing's new growth drivers did not appear out of nowhere; they were created through the process of "phasing out old industries and building new ones":
- Phasing Out Old Industries: In 2017, Beijing shut down the largest clothing wholesale market in North China, followed by the demolition of 45 clothing markets and over 2,100 outdated factories (including cement and chemical plants). In the short term, this impacted the GDP of Xicheng and Fengtai districts, but it freed up space for new developments.
- Building New Industries: The former sites of these industries have been transformed into modern industrial parks. For example, the Dongbatian area has been developed into the "Jinke New Area" (a national-level financial technology demonstration zone); the former clothing city in Dahongmen has been converted into the "Nanzhong Axis International Cultural and Technology Park," attracting more than 500 companies, including many in chip and AI technologies. The scattered industrial land in Yizhuang has been consolidated into an integrated circuit industrial park, with SMIC Jingcheng (investing 49.7 billion yuan) producing 28-nanometer chips.
III. New Drivers Take Off: Integrated Circuits Experience Double-Digit Growth, AI Leads the Nation
The most notable growth in the first half of 2026 came from the integrated circuit sector, which grew by 92.1%. AI has also become a key driver:
- Integrated Circuits: From losses to explosive growth, companies like Cambricon, which was once mocked for using PPTs in its chip development, saw revenue soar by 453% and net profit increase by 2 billion yuan in 2025. Haiguang Information, a company specializing in CPUs, reported revenue of 14.3 billion yuan (a growth of 56.9%) in 2025. Beifang Huachuang, a leading domestic semiconductor equipment manufacturer, also saw significant revenue growth. These companies receive orders from across China and even overseas but keep their production value in Beijing.
- AI: Beijing leads the nation with 259 registered large-scale AI models, accounting for 40% of national AI financing and 30% of AI-related talent. The digital economy accounts for 46.4% of GDP, higher than in Shanghai and Shenzhen. This includes practical applications such as the 48-day construction of a supercomputing center by Jiuzhang Yunji and robots used 24/7 in production lines at CATL. These are examples of "action-oriented" AI technologies.
IV. Scientific Research as the Foundation: Universities and Research Institutions as Sources of Innovation
Beijing's success in cutting-edge technologies is the result of decades of investment in research:
- Research Institutions Spawning Enterprises: The Institute of Computing Technology at the Chinese Academy of Sciences has spawned several listed companies, including Zhongke Shuguang (servers), Cambricon (AI chips), and Haiguang Information (CPUs), covering the entire chip production chain. Tsinghua University has helped develop companies like Zhipu AI (large-scale models) and Qingwei Intelligence (reconfigurable chips), transforming laboratory technologies into profitable businesses.
- University and Award Advantages: With 92 universities (40 directly under the central government), Beijing received 27.36% of the national science and technology awards in 2025, the highest share in the country. Universities are no longer just places for publishing research papers but have become centers of innovation, with rapid technology commercialization.
Future: A Strong Foundation and New Drivers
Having spent a decade transforming its industrial structure, Beijing plans to further invest in cutting-edge technologies in the newly created spaces. Projects such as the second phase of SMIC Jingcheng, breakthroughs in more advanced semiconductor equipment by Beifang Huachuang, and the expansion of Galaxy Universal's robot production capacity are all on the agenda. With both a stable economic foundation and new growth drivers, Beijing is set to become one of the brightest lights in China's economic landscape.