China's H1 industrial output up 5.4% as innovation accelerates

A construction worker welds pipeline supports under high temperatures at the construction site in Zhangye, Gansu Province, China, July 8, 2026. /VCG A construction worker welds pipeline supports under high temperatures at the construction site in Zhangye, Gansu Province, China, July 8, 2026. /VCG China's industrial sector maintained stable growth and continued to be a key driver of the economy in the first half of 2026, officials from the Ministry of Industry and Information Technology said at a press conference on Monday. The value-added output of major industrial enterprises increased by 5.4% year on year, with 32 of the country's 41 major industrial sectors reporting growth, Wang Weiming, the chief engineer of the ministry, said. He noted that corporate profitability improved while strong global demand for products related to artificial intelligence and green development helped boost exports of integrated circuits, electronic components and wind turbines. According to Wang, growth was also supported by major industrial provinces and advanced manufacturing sectors, including electronics, automobiles and electrical machinery. He added that China continued to upgrade its manufacturing sector by promoting smart factories, advanced manufacturing clusters and greener production. Wang also highlighted the performance of the equipment manufacturing sector, where value-added output rose 6.4% year on year. Equipment exports increased 18.2%, driven by growing overseas demand for products such as new energy equipment, automobiles and ships. Robots assemble automotive components on the production line at a manufacturing base in Changzhou, Jiangsu Province, China, July 16, 2026. /VCG Robots assemble automotive components on the production line at a manufacturing base in Changzhou, Jiangsu Province, China, July 16, 2026. /VCG China's information and communications industry also posted solid growth, said Xie Cun, director general of the ministry's information and communications development department. By the end of June, China had built over 5.1 million 5G base stations, while intelligent computing capacity spiked by 177% year on year. More than 26,000 "5G + Industrial Internet" projects are now under construction, accelerating the digital transformation of the real economy. Looking ahead, China will continue to expand new growth drivers, strengthen industrial and supply chain resilience, and promote high-quality industrial development, the officials stressed.