China’s Industrial Profits Rise 18.7% in First Half of 2026 as Exports Support Manufacturing

China’s industrial profits increased 18.7% year over year to CNY 3.95 trillion during the first half of 2026, according to data released by the National Bureau of Statistics of China. The pace of growth eased slightly from the 18.8% recorded in the January-May period.

The results indicate that strong export activity continued to offset weak domestic demand, as China’s manufacturing sector benefited from overseas sales despite ongoing efforts by policymakers to stimulate household consumption.

State-owned enterprises reported profits of CNY 1.30 trillion, an increase of 17.9% from a year earlier. Joint-stock companies recorded the strongest performance among major ownership groups, with profits rising 24.7% to CNY 3.04 trillion. Private enterprises also posted growth, with profits increasing 13.0% to CNY 965.56 billion.

By industry, the mining sector remained the largest contributor to profit growth, with earnings climbing 33.5% compared with the same period last year. Manufacturing profits rose 20.1%, while the utilities sector recorded a 4.2% decline.

Among manufacturing industries, the strongest gains were reported by non-ferrous metal smelting and rolling, where profits nearly doubled with a 99.4% increase. The computer, communication and electronic equipment manufacturing sector posted a 96.9% rise, while the chemical industry recorded profit growth of 67.8%.

In June alone, industrial profits increased 15.1% year over year, slowing from the 21.1% annual growth recorded in May.

The latest figures point to continued strength in China’s export-oriented industries, while domestic demand remains comparatively subdued, contributing to an uneven recovery across the broader economy.