BEIJING, CHINA / RankWire.AI / – In the first half of 2026, China’s digital industry generated a total of 20.71 trillion yuan in revenue, representing a 13.6% increase compared to the same period last year. The sector’s total profit also rose by 19.3%, reaching 1.79 trillion yuan. According to the Ministry of Industry and Information Technology, the industry’s profit margin stood at 8.6%, which is 0.7 percentage points higher than the previous year. These figures encompass the core areas of China’s rapidly expanding digital economy.
The country’s largest regional digital markets maintained dominance during this period. The top 10 provincial-level markets collectively contributed 17.21 trillion yuan in revenue, marking a 13.2% growth year-on-year. These regions accounted for 83.1% of the national digital industry’s total revenue and drove 87% of its overall growth. Guangdong, Jiangsu, Beijing, Shanghai, and Zhejiang remained among the leading centers for China’s digital sector.
Growth in Central China surpassed the national industry average, with regional revenue reaching 2.86 trillion yuan, a 28.3% increase from the previous year. During the first half, China continued expanding its communications and computing infrastructure. By the end of June, the country had established 5.102 million 5G base stations and had 32.86 million 10G PON ports supporting gigabit network services. The number of 5G RedCap base stations also reached 2.247 million.
Expansion of computing capabilities and 5G networks accelerates
China’s intelligent computing capacity hit 2,185 EFLOPS measured in FP16 during this period, reflecting a 177% increase from the previous year. The overall utilization rate across computing facilities remained at 71.4%. Additionally, China developed 52 intelligent computing centers with deployments exceeding 10,000 accelerator cards. Over 80,000 private 5G industry networks are active nationwide. Authorities reported more than 26,000 projects integrating 5G with industrial internet technologies across the country.
The digital manufacturing sector also demonstrated significant growth in production, revenue, and profits. The electronics industry saw a 14.8% rise in value-added output compared to the prior year. Major electronic information manufacturers generated 12.15 trillion yuan in revenue, up 17.8%, while their combined profit surged by 66% to 703.6 billion yuan. Earnings growth was driven by segments including integrated circuits, computer manufacturing, and specialized electronic materials. Electronics output growth outpaced overall industrial growth by 9.4 percentage points during this period.
Software and internet services continue to expand
The software and information technology services industry in China maintained steady growth alongside digital manufacturing. Revenue from this sector increased by 9.5% in the first half of 2026. Software product revenue grew by 6.9%, while IT services revenue advanced by 10.4%. Major internet companies experienced a 10.1% rise in revenue, with total profits increasing by 16.6% compared to the same period last year. Additionally, telecommunications business volume expanded by 8.3% at constant prices.
During the first six months of 2026, China’s digital sector outpaced the broader economy, which grew by 4.7% as reported by the National Bureau of Statistics. The sectors of information transmission, software, and information technology services contributed a 10.7% increase in value added. The country’s digital industry comprises electronic information manufacturing, telecommunications, software, IT services, and internet-related businesses, collectively generating trillions of yuan in revenue during this period.