China Industrial Profits Surge as AI Demand and Oil Prices Boost Manufacturing
China’s industrial profits posted a sharp increase in the first four months of 2026, supported by rising demand tied to artificial intelligence infrastructure and higher commodity prices linked to ongoing tensions in the Middle East.
Data released by the National Bureau of Statistics of China showed that industrial profits rose 18.2% year-over-year between January and April, accelerating from the 15.5% increase recorded during the first quarter.
The figures point to improving momentum across key sectors of China’s industrial economy as global demand for AI-related hardware and industrial materials continues to strengthen.
State-owned enterprises recorded profits of CNY 827.15 billion during the period, up 17.1% from a year earlier. Joint-stock companies posted even stronger performance, with profits surging 24.0% to CNY 1.88 trillion.
Private-sector firms also remained a major contributor to industrial growth, although the pace moderated slightly. Profits among private companies increased 23.7%, easing from the 25.4% growth reported in the first quarter, totaling CNY 651.14 billion.
Manufacturing industries continued to lead overall gains, with profits climbing 20.4%, while mining sector profits jumped 26.0% amid elevated commodity and energy prices. Utility companies, however, saw profits decline 1.9%.
Some of the strongest performances came from industries closely tied to the global AI expansion cycle.
Profits in computer, communication, and electronic equipment manufacturing surged 107.7% from a year earlier, reflecting rising investment in semiconductors, servers, and AI infrastructure. Meanwhile, profits in non-ferrous metal smelting and rolling processing jumped 117.8%, supported by strong demand for industrial metals used in electronics, energy, and manufacturing supply chains.
On a monthly basis, industrial profits rose 24.7% in April alone, accelerating from 15.8% growth in March and marking the strongest monthly expansion since November 2023.
The latest data highlights how China’s industrial sector is benefiting from both global technology investment trends and commodity market dynamics, even as broader concerns remain over domestic consumption, real estate weakness, and external trade pressures.
