China's industrial and information technology sector demonstrated a positive start in the first quarter of 2026, marked by stable expansion and accelerated structural upgrades. Officials from the Ministry of Industry and Information Technology highlighted these achievements during a press conference held on April 21.
Industrial performance remained robust during the period. Value-added output of large-scale industrial enterprises increased by 6.1% year-on-year, with all 31 provincial-level regions recording growth. Over 80% of industrial sectors reported output expansion, contributing nearly 40% to overall economic growth. Telecommunications service volume rose by 8.3%, accelerating by 0.6 percentage points compared to the same period last year.
The equipment manufacturing sector led growth with an 8.9% increase in value-added output, accounting for nearly half of the industrial growth. High-value products such as robotic reducers and memory chips saw production surges exceeding 40%. Manufacturing investment rebounded with a 4.1% growth rate, up 3.5 percentage points from 2025, while sectors like computer equipment and aerospace manufacturing recorded double-digit investment growth. The manufacturing Purchasing Managers' Index rose 1.4 percentage points in March, entering expansion territory.
New growth drivers gained momentum through technological innovation. Authorities selected 21 national-level manufacturing pilot platforms and 14 top-tier technology incubators. The second domestically-built large cruise ship completed docking, while Level 2 driving assistance systems reached 69% penetration in new passenger vehicles.
Integration between digital and real economies deepened, with 5G and gigabit optical networks now covering 91 out of 97 major economic sectors. Over 25,000 integrated 5G-industrial internet projects have been established, including 1,260 categorized 5G factories. These smart factories reported average product quality improvements of 20.5%, operational cost reductions of 18.4%, and productivity gains of 24.7%.
Future industry development focused on quantum technology and clean hydrogen, with more than 100 innovation tasks initiated. The country has cultivated 509,000 high-tech enterprises and 193 innovation clusters hosting 54,000 innovative firms.
Support for businesses intensified through specialized services for SMEs, accelerated clearance of overdue payments, and regulatory improvements. Profits of major industrial enterprises grew 15.2% in the first two months, while sectors like new energy vehicles and photovoltaics showed improved market order. Specialized SMEs labeled as "little giants" saw output increase by 10.2% in Q1.
Future measures will include three-year action plans for enterprise cultivation, establishment of specialized support centers, and new national SME development funds.