China Industry Sector Reports Steady Growth and High-Tech Expansion in First Three Quarters of 2026

China’s scale-above-designated-size industrial value added grew 5.3% year-on-year in the first three quarters of 2026, with industry contributing roughly 35% to overall economic growth, according to the Ministry of Industry and Information Technology. Industrial production and profits expanded in tandem, as more than three-quarters of industrial sectors posted growth and 10 major industrial provinces averaged approximately 7% growth during the period.

Industrial Growth Momentum and Regional Contributions

Industrial economic operations remained stable and improved in quality through the first nine months of the year. According to figures shared by the Ministry of Industry and Information Technology, the third quarter saw industrial value added grow 5.1%, marking a 0.4 percentage point acceleration from the second quarter. In September alone, the sector expanded 5.5%, building sequential monthly momentum.

The expansion drew heavy lifting from core equipment and manufacturing sectors. Ministry of Industry and Information Technology spokesperson and Operation Monitoring and Coordination Bureau Director Tao Qing noted that electronics, automotive, electrical machinery, general equipment, specialized equipment, and marine engineering equipment posted strong growth, collectively contributing over 60% to total industrial expansion.

High-Tech Manufacturing and Structural Transformation

Structural upgrades pushed industrial output toward advanced manufacturing fields. High-tech manufacturing value added rose 14.3% year-on-year in the first three quarters, accelerating by 1.0 percentage point compared to the first half. High-tech and digital product manufacturing sectors accounted for over two tenths of total industrial value added while generating more than half of overall industrial growth.

Equipment manufacturing value added grew 7.1% in the first three quarters, contributing 26.6% to industrial growth. Major production milestones included 29.1% growth for industrial robots, 13.5% growth for CNC machine tools, and an 11% increase in new energy vehicles. National shipbuilding completions surged 50.7% over the same period.

Artificial Intelligence Integration and Smart Factory Deployment

Manufacturing upgrades increasingly relied on artificial intelligence and digital infrastructure. Ministry of Industry and Information Technology Chief Engineer Wang Weiming stated at the October 20 briefing that the agency is drafting new policies to drive deep integration between artificial intelligence and the manufacturing sector.

Industrial facilities built out digital systems across multiple sectors. China has deployed more than 13,000 advanced intelligent factories and over 500 exemplary intelligent factories. Domestic computing power and large language models supported more than 1,000 application scenarios across 20 industries, including steel, automotive, and pharmaceuticals.

Small and Medium Enterprise Profits and Structural Challenges

Smaller enterprises experienced uneven operating conditions despite broad macroeconomic gains. From January to August, scale-designated industrial small and medium enterprises posted a 13.8% year-on-year increase in total profits, reaching the highest comparable level since 2022. Specialized and sophisticated little giant enterprises fared better, with profits rising 22.2% year-on-year.

Ministry officials acknowledged that small and micro enterprises continue to navigate pressing challenges regarding order volumes, operating costs, and recruitment.