BEIJING, July 27, 2026 | Profits at China’s major industrial firms surged 18.7% year on year in the first half of 2026, highlighting stronger earnings momentum as industrial production remained stable and emerging growth sectors expanded rapidly.
According to data released Monday by the National Bureau of Statistics (NBS), industrial enterprises above designated size, defined as companies with annual main business revenue of at least 20 million yuan ($2.95 million), recorded combined profits of 3.95 trillion yuan ($583.28 billion) from January through June.
The results point to a broad improvement in industrial profitability, supported by steady production, recovering industrial product prices and the rapid expansion of new growth drivers.
“Industrial production remained stable, while new growth drivers continued to expand rapidly, providing strong support for profit growth,” said Yu Weining, chief statistician with the NBS Department of Industry.
Electronics Industry Leads Profit Growth
The electronics sector emerged as one of the strongest contributors to the overall increase.
As artificial intelligence becomes increasingly integrated into industries and demand for computing power continues to rise, profits in the electronics industry jumped 96.9% during the first half of the year.
The sector alone contributed 8.5 percentage points to the overall growth in industrial profits, underscoring the growing importance of AI-related demand and computing infrastructure to China’s manufacturing economy.
The figures suggest that technology-intensive industries are becoming an increasingly important source of momentum for corporate earnings, even as traditional industrial activity maintains a steady pace.
Emerging Industries Gain Momentum
New growth drivers were also reflected in sharp profit increases across several specialized manufacturing industries.
Profits in recycled rubber manufacturing climbed 133.3%, while earnings in graphite and carbon product manufacturing rose 61%.
The strong performance of these industries points to growing momentum in sectors connected to advanced materials, resource recycling and emerging industrial applications.
Meanwhile, total operating revenue among industrial firms above designated size increased 6.5% year on year, supported by stable production growth and a continued recovery in industrial product prices.
Private and State-Owned Firms Both Post Gains
Profit growth was recorded across different ownership categories, although the pace varied.
Joint-stock industrial enterprises reported a 24.7% year-on-year increase in profits during the first half of 2026. Profits at state-owned industrial enterprises rose 17.9%, while private industrial enterprises recorded a 13% increase.
The figures indicate that improved industrial profitability was not confined to a single ownership group, with both state-linked and private businesses benefiting from the broader recovery in industrial earnings.
AI and New Growth Drivers Reshape Industrial Outlook
China’s latest industrial profit data highlight a shift in the sources of manufacturing growth. While stable production and firmer industrial product prices provided a foundation for improving earnings, fast-growing technology and emerging industries played an increasingly prominent role.
The nearly doubling of electronics-sector profits is particularly significant as businesses across the economy increase investment in artificial intelligence and computing capacity.
Taken together, the first-half figures suggest that China’s industrial sector entered the second half of 2026 with stronger profit momentum, supported by both traditional manufacturing activity and rapidly expanding technology-driven industries.
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