"The service industry is reshaping the economic landscape of the Yangtze River Delta, with sectors such as information technology and software developing at an accelerated pace."

Summary of Key Points

In the first half of 2026, the service industries in the three provinces and one municipality of the Yangtze River Delta (Shanghai, Jiangsu, Zhejiang, Anhui) all experienced stable growth, with their contribution to GDP continuing to rise, making them a core driving force for the economy. Modern service sectors such as information software and business services particularly stood out in terms of growth. Local governments have introduced targeted policies to expand and improve the quality of these services, while also developing differentiated strategies based on their respective strengths—Shanghai focuses on finance, Jiangsu on productive services, Zhejiang on culture, tourism, and sports, and Anhui on high-tech investment. Modern services are reshaping the economic landscape of the Yangtze River Delta.

I. The Service Industry as a Stepping Stone for Triangular Economic Growth, with a Rising Proportion

The service industry in the Yangtze River Delta has shown an overall trend of increasing volume and proportion, with each province and municipality becoming a key driver of economic growth:

• Shanghai: The service industry generated 2.2 trillion yuan in output, with a growth rate of 5.9% (1.2 percentage points faster than industry), accounting for nearly 80% of GDP (the highest among cities nationwide), contributing over 80% to economic growth.
• Jiangsu: The service industry generated 3.9 trillion yuan in output, with a growth rate of 5.5%, and its proportion increased from 53% in 2024 to 55.3% in the first half of 2026, contributing 3 percentage points to GDP growth.
• Zhejiang: The service industry generated 2.9 trillion yuan in output, with a growth rate of 5.5%, and its proportion approached 60% (second only to Shanghai), rising for three consecutive years.
• Anhui: The service industry generated 1.5 trillion yuan in output, with a growth rate of 5.2%, and its proportion increased from 54.2% in 2024 to 56.4%, contributing over 50% to economic growth.

In simple terms, at least 5 out of every 10 yuan of GDP in the Yangtze River Delta comes from the service industry, and in Shanghai, it accounts for 8 out of every 10 yuan, highlighting its increasingly significant role in stabilizing the economy.

II. Modern Services Outperforming the Overall Economy, with Information Software and Business Services as Highlights

Apart from traditional services (such as catering and retail), high-tech, high-value-added modern services have grown faster, particularly in the following areas:

1. Information Software Industry:

• Anhui had the highest growth rate (18.7%), with integrated circuit design business increasing by 2.8 times and information storage services rising by 67%.
• Shanghai, Jiangsu, and Zhejiang all saw growth rates around 10%, with Shanghai having 196 large-scale AI models registered (one-fifth of the national total).

2. Leasing and Business Services:

• Jiangsu had a growth rate of 14%, with supply chain management and internet advertising growing by 18.5% and 30.8%, respectively.
• Anhui had a growth rate of 10.3%, with comprehensive management services increasing by 34.6%.
• Experts in Shanghai attribute this to the increase in headquarters companies, a recovery in office leasing, and policy support.

These industries generate revenue through intellectual work—such as AI models and supply chain management—and not only are profitable but also drive the development of other sectors.

III. Local Policies Focus on Expanding Capacity and Improving Quality

This year, all four provinces and municipalities in the Yangtze River Delta have prioritized the service industry, with specific policy directions:

• Shanghai: Integrating the service industry with AI to develop initiatives like "Modeling Shencheng" and "Artificial Intelligence +," using AI to upgrade services.
• Jiangsu: Launching a five-year plan to make the service industry output nearly 10 trillion yuan by 2030 and promoting integration of manufacturing and services (e.g., using service technologies to improve factory efficiency).
• Zhejiang: Focusing on six key areas, aiming for a 7-trillion-yuan output by 2030.
• Anhui: Encouraging the digitalization of the service industry through incentives, such as providing funding for companies to use AI and big data to upgrade their services.

These policies are not just empty slogans but have concrete goals and measures, such as Jiangsu's target of 10 trillion yuan and Zhejiang's focus on 56 specific sectors.

IV. Clear Differentiated Advantages, with Each Region Playing Its Own Card

There is no homogeneous competition among the four provinces and municipalities; instead, they develop according to their unique strengths:

• Shanghai: Finance is its core strength, with financial market transactions increasing by 24% in the first half of the year, and trading volumes at the Shanghai Futures Exchange, Shanghai Gold Exchange, and Shanghai Stock Exchange all rising by more than 35%.
• Jiangsu: Strong in productive services, with the above-scale production service industry growing by 8.9%, contributing 76.6% to growth, such as supply chain management helping factories save costs and internet advertising aiding businesses in selling products.
• Zhejiang: The culture and tourism sector is booming, with events like the "ZheBA" basketball tournament and the "Wuyue Cup" driving consumer spending, and the cultural and sports industry revenue increasing by 21.1% in the first five months.
• Anhui: Heavy investment in high technology, with information services growing by 22.9%, and exports of new energy vehicles, photovoltaic products, and lithium batteries doubling. The service and manufacturing industries are mutually reinforcing.

In summary, each region has its own strengths: Shanghai relies on finance, Jiangsu on industrial services, Zhejiang on culture and tourism, and Anhui on high technology.

V. Modern Services Reinforce the Yangtze River Delta's Competitiveness, with Greater Potential for the Future

Modern services are characterized by high technology, skilled labor, and high added value (e.g., AI engineers and financial analysts). They not only drive GDP growth but also transform the regional industrial structure:

• Previously, the Yangtze River Delta relied on manufacturing; now, the service industry is empowering manufacturing (e.g., using AI to optimize production and reduce costs through supply chains).
• The growth of these sectors makes the region more competitive in the global market (e.g., Shanghai's finance and Anhui's integrated circuit design).

It is foreseeable that the service industry in the Yangtze River Delta will become even more sophisticated in the future, creating more jobs and enhancing the region's economic resilience.

Overall, the service industry has moved from a supporting role to a central one, with modern services playing a leading role. The differentiated policies and regional strengths make this sector very promising for the future. Changes that individuals may notice include more AI services, improved supply chains, and more vibrant cultural and tourism activities, all of which are closely related to the growth of the service industry.