China's GDP grew by 5% in Q1. What's behind the growth?

China's economy showed strong resilience in the first quarter of 2026, growing by 5% year-on-year—exceeding its target range—driven by robust industrial output, rising service consumption, and a surge in high-tech manufacturing. According to the National Bureau of Statistics and expert analysis from Peking University’s Dr. Li Luan, the growth was fueled by diversification in trade, particularly with Belt and Road countries, and a broad-based commercial base including private enterprises. The service sector, especially modern and digital services, grew by over 5%, while demand-side indicators like retail sales and fixed asset investment improved. Despite this positive momentum, challenges remain, including an imbalance between supply and demand and the need to shift toward a consumption-driven economy. Meanwhile, Hong Kong’s IPO market surged to the global top, raising over $14 billion in Q1, largely due to A-plus-H listings and strong investor interest in AI and TMT sectors. Experts attribute this to Hong Kong’s stability, deep industrial base, and integration with China’s innovation economy. On the global stage, France passed landmark legislation to streamline the restitution of colonial-era artworks, marking a historic shift toward institutionalized returns. The episode also covered NASA’s Artemis II mission, which set a new record for human distance from Earth, and highlighted differing lunar exploration strategies between the U.S. (aggressive, commercial) and China (incremental, scientific).