New growth drivers fuel China’s industrial profit gains
Wire desk byline Sourced from Xinhua, Dawn, Arab News, Anadolu and Minute Mirror. Translated and abridged by the GSRRA Desk.
Fast-growing new growth drivers, including AI-related industries, are fueling sustained growth in China’s industrial profits, as the country’s shift toward innovation-driven development gathers momentum.
Profits at China’s major industrial enterprises rose 18.7 percent year on year in the first half (H1) of the year, accelerating from a 15.5-percent increase in the first quarter, the National Bureau of Statistics (NBS) said Monday.
These industrial firms, with an annual main business revenue of at least 20 million yuan (about 2.95 million U.S. dollars), reported 6.5 percent revenue growth in the January-June period, quickening from 5 percent in the first quarter. Moreover, their operating profit margin climbed to 5.7 percent, the highest year-to-date reading since 2024.
Commenting on the data, NBS statistician Yu Weining said the government has rolled out more proactive macro policies this year, developing new quality productive forces and helping keep industrial production on a steady growth trajectory.
Among the biggest contributors was the electronics industry, where the rapid AI adoption across industries fueled surging demand for computing power.
In H1, profits in the electronics sector nearly doubled from a year earlier, contributing 8.5 percentage points to the overall profit growth of major industrial enterprises, the NBS data showed.
In breakdown, profits at computer manufacturing companies surged nearly sevenfold from a year ago in H1, while integrated circuit manufacturers posted a nearly 26-fold increase in profits. Fiber-optic manufacturers, benefiting from rising demand for data center connectivity, saw profits increase by more than fourfold.
The strong performance also broadened beyond high technology. Profits in the raw materials production sector climbed 71.7 percent year on year in the first six months, with notable gains in the nonferrous metals and chemicals industries.
Despite the stellar figures, challenges remain. Yu noted that uncertainty surrounding international commodity prices, insufficient market demand, and pressure on corporate cash flow continue to weigh on some industrial enterprises.
Looking ahead, more efforts should be made to continue fostering emerging and future industries while upgrading traditional manufacturing to ensure a smooth transition from old growth drivers to new ones, Yu said.
China’s 15th Five-Year Plan (2026-2030) highlights the development of a modern industrial system anchored by advanced manufacturing. Major manufacturing provinces are already moving in that direction, as East China’s Jiangsu Province is building an internationally competitive advanced manufacturing base, and Central China’s Henan Province aims for strategic emerging industries to account for 30 percent of industrial value added by 2030.
As the development of new technologies and advanced manufacturing continues to pick up pace, the country’s new growth drivers are expected to play an increasingly important role in supporting industrial growth and high-quality economic development, experts said.
Reference Link:- https://english.news.cn/20260727/f212ecacaf174967b8f71e442efdc3a0/c.html
Zamir Ahmed Awan is the founder and Chair of the Global Silk Route Research Alliance, a think tank in Islamabad. He studied engineering at Shanghai University in the 1980s, and years later he went back to China as Pakistan's science counsellor in Beijing, from 2010 until 2016, working on science and higher education cooperation between the two countries.…
