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 in the previous year. Meanwhile, overall profits 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 year before. These figures encompass key segments of China’s rapidly expanding digital economy.
Leading regional digital markets maintained their dominance during this period, with the top 10 provincial-level areas collectively generating 17.21 trillion yuan in revenue, a 13.2% increase from the previous year. These regions accounted for 83.1% of the entire nation’s digital industry revenue and contributed 87% of the overall sector growth. Guangdong, Jiangsu, Beijing, Shanghai, and Zhejiang continued to be among the most influential digital hubs in the country.
Central China experienced a faster expansion rate than the national average for digital industry growth, with regional revenue reaching 2.86 trillion yuan—a 28.3% increase year-over-year. During the first half of 2026, China also continued its expansion of communications and computing infrastructure. By the end of June, the country had installed 5.102 million 5G base stations, and there were 32.86 million 10G PON ports supporting gigabit network services. The number of 5G RedCap base stations had also grown to 2.247 million.
Growth in Computing Power and 5G Infrastructure
China’s intelligent computing capacity reached 2,185 EFLOPS using FP16 measurement during this period, marking a substantial 177% increase from the previous year. The overall utilization rate of the country’s computing facilities was 71.4%. Additionally, China developed 52 intelligent computing centers with more than 10,000 accelerator cards deployed. Nationwide, over 80,000 private 5G networks are operational, and government reports indicate more than 26,000 active projects integrating 5G with industrial internet technologies across the country.
In the manufacturing sector, digital advancements led to notable increases in output, revenue, and profitability. The electronics industry’s value-added output surged by 14.8% year-over-year. Major electronic information producers achieved a combined revenue of 12.15 trillion yuan, up by 17.8%, while their aggregate profit soared by 66%, reaching 703.6 billion yuan. Growth was driven by segments such as integrated circuits, computer manufacturing, and specialized electronic materials. During this period, electronics output growth surpassed the overall industrial growth rate by 9.4 percentage points.
Continued Rise of Software and Internet Services
The sector encompassing software and IT services maintained its upward trajectory, with revenue increasing by 9.5% in the first half of 2026. Revenue from software products rose by 6.9%, while IT services saw a growth of 10.4%. Leading internet companies experienced a 10.1% boost in revenue, and their combined profits increased by 16.6% compared to the same period last year. The telecommunications segment also saw an 8.3% rise in business volume, measured at constant prices.
During the first half of 2026, the digital sector outpaced China’s broader economy, which the National Bureau of Statistics reported grew by 4.7%. Growth in information transmission, software, and IT services reached 10.7% in terms of value added. China’s digital industry encompasses electronic information manufacturing, telecommunications, software, IT services, and internet-related ventures, collectively generating trillions of yuan in revenue across the country during this period.