China's Industrial Profits Extend Double-Digit Growth, Up 15.5%

China's industrial enterprises above the designated size posted a 15.5 percent year-on-year profit increase in the first three quarters of 2026, extending the double-digit growth trend, according to data released by the National Bureau of Statistics (NBS).

In September alone, profits rose 14.4 percent from a year earlier.

The growth was broad-based but uneven across company sizes and ownership types.

Large industrial enterprises recorded an 18.8 percent profit increase in January-September, followed by medium-sized firms at 15.4 percent and small firms at 8.7 percent.

The electronics sector doubled its profits in the first nine months, adding 9.6 percentage points to the overall industrial profit growth and serving as a key pillar of the expansion.

The NBS attributed part of the strength to demand linked to AI computing power and advanced storage.

Profits in electronic specialty materials manufacturing rose 220 percent, and semiconductor discrete device manufacturing rose 51.7 percent.

Faster development of next-generation information technology increased optoelectronic device and electronic circuit manufacturing by 69.8 percent and 62.5 percent, respectively.

The industrial mix continued to shift toward higher-value segments. Profits in high-tech manufacturing above the designated size rose 52.0 percent in the first three quarters, 36.5 percentage points faster than the overall industrial sector.

High-tech manufacturing accounted for 25.5 percent of total industrial profits, up 6.2 percentage points from a year earlier.

Computing power and data center construction drove profits in optical fiber manufacturing up 570 percent and optical cable manufacturing up 110 percent. In the computer and server supply chain, computer peripheral equipment manufacturing profits rose 280 percent, computer complete machine manufacturing 170 percent, and industrial control computer and system manufacturing 90.9 percent.

Raw materials manufacturing also posted solid gains. Profits in the sector rose 44.9 percent from January to September, contributing 5.9 percentage points to overall industrial profit growth. Strong demand for copper and aluminum from AI and new energy sectors pushed nonferrous metals profits up 79.7 percent.