Artificial intelligence enhances the growth of profits of industrial companies in China economy

Major industrial companies in China achieved rapid growth in their profits during the first five months of 2026, driven by increased demand for electronics related to artificial intelligence and renewable energy materials, according to data reported by Xinhua from the Chinese National Bureau of Statistics.

The data showed that the total profits of industrial companies with annual revenues of no less than 20 million yuan (about $2.94 million for the company as a minimum annual revenue) amounted to 3.14 trillion yuan (about $460 billion), during the period between January and May, an increase of 18.8% on an annual basis.

This represents an acceleration compared to the 18.2% growth rate recorded during the first four months of the year, while industrial profits increased in May alone by 21.1%.

Yue Weining, a statistician at the Chinese National Bureau of Statistics, said that industrial revenues rose by 5.5% year-on-year during the first five months of the year, an increase of 0.3 percentage points compared to the period between January and April, thanks to continued strength in industrial production and rising producer prices.

The equipment manufacturing sector remained the main driver of growth, after its profits increased by 14.1%, contributing 5.2 percentage points to the total growth in industrial profits.

The electronics industry recorded an exceptional performance, as its profits jumped by 103.9%, contributing alone to 43.1% of the total growth in industrial profits, driven by the global boom in artificial intelligence and the accompanying significant increase in demand for advanced computing and memory products.

Strong gains

• The raw materials manufacturing sector achieved strong gains, after its profits increased by 83.1%, contributing 10.2 percentage points to the growth in industrial profits.
• Growing demand from the renewable energy and artificial intelligence sectors has kept copper and aluminum prices at high levels, with non-ferrous metals sector profits growing by 117.1%.
• The oil processing industry returned to profitability, while chemicals sector profits increased by 71.6%.
• In the high-tech manufacturing sector, profits rose 44.7%, contributing 8 percentage points to industrial profit growth.
• The Optoelectronics and Discrete Devices industries recorded earnings growth of 53.8% and 40.6%, respectively.
• Profits of the specialized electronic materials industry jumped by 665.4%.

The data also showed a continued decline in cost burdens on companies, and Yue noted that the operating profit margin reached 5.56%, rising by 0.63 percentage points compared to last year, recording its highest level among all cumulative periods since 2024.