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China's fiscal revenue increased at a steady rate of 10.6 percent on an annualized basis during the first half of this year with fiscal spending in key sectors growing at a faster pace and sustaining economic growth, the Ministry of Finance said on Friday.

China's high-tech giants have been pouring billions of dollars into setting up AI laboratories and poaching talent from foreign rivals.

China's current account surplus expanded in nominal terms to billion, or 1.4 percent of the GDP, in the second half of 2017 from billion, or 1.5 percent, in the second half of 2016. "But it remains significantly below its 2007 half year peak over 10 percent of GDP," the Treasury report said.

China's consumer price index, the main gauge of inflation, posted its first year-on-year drop in 11 years last month, mainly due to a high comparison base of pork prices, officials and experts said on Wednesday.

China's construction machinery manufacturing industry was confronted with a recession between 2012 and 2016, as market demand fell. After expanding for nearly two-years, the sector's growth started to slow last year.