According to a report by China Daily on March 27…
China’s industrial sector has kicked off 2026 on solid footing, with profits of major industrial enterprises accelerating sharply in the first two months of the year, signaling improving business conditions and the growing strength of high-tech sectors. Analysts say this momentum sets a positive tone for the early stages of China’s 15th Five-Year Plan (2026–30).
Data from the National Bureau of Statistics show that industrial enterprises with annual revenue exceeding 20 million yuan ($2.89 million) reported total profits of 1.02 trillion yuan, up 15.2% year-on-year in January–February. This marks a strong acceleration from 2025, when annual profits rose just 0.6%.
High-tech and equipment manufacturing leading the recovery
- Equipment manufacturing profits surged 23.5%, up 15.8 percentage points from 2025.
- High-tech manufacturing profits jumped 58.7%, accelerating 45.4 points compared with the previous year.
“These gains indicate a structural shift in China’s industrial sector,” said Tang Guanghua, analyst at Shenyin & Wanguo Futures. “Innovation is driving enterprises toward higher value-added segments, supporting sustainable growth rather than just short-term output.”
Wen Bin, chief economist at China Minsheng Bank, noted that while external uncertainties—such as geopolitical tensions—could affect global demand, pro-growth policies will continue to bolster industrial production and corporate revenues, providing a solid foundation for profit expansion.
Policy support and new growth drivers
Experts say that the start of 2026 reflects the effective implementation of policy measures aimed at:
- Expanding domestic demand
- Stabilizing investment
- Accelerating structural upgrading and innovation
Pan Jiaofeng, president of the Institutes of Science and Development at the Chinese Academy of Sciences, emphasized that “2026 will see a series of rapid policy measures translated into tangible outcomes,” underscoring the country’s strong positioning to deliver a robust economic start.
Global confidence in China’s economic resilience
Foreign executives also express optimism about China’s growth trajectory:
- Tetsuro Homma, executive vice-president of Panasonic Holdings Corp, highlighted China’s advantages in innovation speed, intelligent transformation, talent, and supply chain capacity, saying, “Panasonic will continue to deepen its presence in China.”
- Cui Jingyi, vice-president of UK-based industrial software firm Aveva, added, “We believe the structural dividends of China’s long-term development will continue to unfold and benefit global markets.”
Signal takeaway
China’s industrial profit rebound, led by high-tech and advanced manufacturing, points to a more resilient, innovation-driven economy. The combination of strong policy support, structural upgrading, and global confidence signals that China is off to a solid start for the 15th Five-Year Plan, offering stable conditions for both domestic and international investors.