China's industrial economy has begun 2026 strongly, according to recent data released by the National Development and Reform Commission (NDRC), with new industries and new technologies gaining further traction and corporate profits rebounding significantly in the first quarter, laying a solid foundation for high-quality development throughout the year.
The equipment manufacturing industry, a key part of the industrial economy, saw value-added output from enterprises above the designated size increasing by 8.9 percent year on year, accounting for more than 30 percent of all industrial enterprises above the designated size.
In particular, the electronics industry experienced rapid growth, with a growth rate of 13.6 percent, making it the primary driver of industrial growth.
Value-added output in high-tech manufacturing rose 12.5 percent year on year, marking the fastest growth since the second quarter of 2022, the NDRC said.
Driven by the country's "AI+" initiative, production of memory chips rose by 43.5 percent and industrial robots by 33.2 percent, as new applications such as embodied intelligence and human-robot collaboration continue to unlock fresh growth potential.
"This year, China has been developing new quality productive forces in light of local conditions, steadily advancing the integration of AI and manufacturing, and the role of new economic drivers in the industrial economy has become increasingly prominent. Meanwhile, local authorities have focused on leveraging the synergistic effects of existing and new policies, resulting in a 5.8 percent year-on-year increase in industrial investment during the first quarter," said Qiao Baohua, chief researcher of economic operations at the China Center for Information Industry Development.
In the past two months, corporate profits have been rebounding, showing stronger confidence in future growth, Qiao added.
Profits of China's major industrial firms increased 15.2 percent year on year in the first two months of 2026.
Profits in equipment manufacturing industries and high-tech manufacturing surged 23.5 percent and 58.7 percent year on year, respectively, during the first two months.
Results of a recent survey show that in the first quarter, industrial enterprises' expectations for their overall business conditions in the second quarter rose by 3.7 percentage points on a quarter-on-quarter basis, indicating an improved investment confidence and positive development outlook.
China sees steady growth in industrial economy in Q1
