China's industrial sector posted strong profit growth in the first quarter of 2026 as the government's proactive macro policies helped cushion the impact of a complex economic environment and boosted momentum in high-end manufacturing, official data showed on Monday.
Profits of China's major industrial firms increased 15.5 percent year on year to reach 1.696 trillion yuan (about 248 billion U.S. dollars) during the January-March period, accelerating by 0.3 percentage points from the growth posted in the first two months of the year, according to data from the National Bureau of Statistics (NBS).
In March alone, profits at major industrial companies increased 15.8 percent from a year earlier, with the pace of growth accelerating by 0.6 percentage points from the January-February period.
Equipment manufacturing remained a major driver of profit growth. Profits in the sector climbed 21 percent in the first quarter, contributing 6.8 percentage points to overall industrial profit growth. The sector accounted for 33.7 percent of total profits among major industrial firms, up 1.7 percentage points from a year earlier.
Within the sector, profits in the electronics industry surged 124.5 percent, supported by strong production and recovering prices. Profits in railway, shipbuilding and aerospace manufacturing rose 16.7 percent, accelerating by 5.3 percentage points from the January-February period.
High-tech manufacturing also posted robust gains, with profits jumping 47.4 percent in the first quarter and contributing 7.9 percentage points to overall industrial profit growth.
Rising demand for smart products also boosted profits in intelligent drone manufacturing and other smart consumer equipment manufacturing by 53.8 percent and 67.3 percent, respectively, the data showed.
"In the first quarter, industrial development showed a positive trend of simultaneous improvement in both quality and efficiency. The share of profits from equipment manufacturing continued to rise, while the contribution of high-tech manufacturing to overall profits also strengthened. This not only improved the profit structure of industrial enterprises, but also reflected an acceleration in the shift toward new growth drivers. Coupled with the steady recovery of prices, these factors boosted revenue and profitability for industrial companies, creating favorable conditions for the sustained improvement of industrial enterprise profits," said Chen Xi, associate research fellow at the Academy of Macroeconomic Research under the National Development and Reform Commission.
China's industrial profits rise in Q1 as high-tech manufacturing drives growth
