BEIJING, CHINA / RankWire.AI / – During the first half of 2026, China’s digital industry generated a total of 20.71 trillion yuan in revenue, marking a 13.6% increase compared to the same period in the previous year. Meanwhile, profits surged 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 segments of China’s rapidly expanding digital economy.
The dominant regional digital markets continued to lead industry activity throughout this period. The top 10 provincial-level markets collectively contributed 17.21 trillion yuan in revenue, a 13.2% rise from the previous year. They accounted for 83.1% of the nation’s total digital industry revenue and were responsible for 87% of the sector’s overall growth. Guangdong, Jiangsu, Beijing, Shanghai, and Zhejiang remained key centers within China’s digital landscape.
Central China experienced growth rates surpassing the national average in digital activity. Regional revenue reached 2.86 trillion yuan, representing a 28.3% year-on-year increase. Throughout the first half of 2026, China continued expanding its communications and computing infrastructure. By the end of June, the country had deployed 5.102 million 5G base stations and 32.86 million 10G PON ports supporting gigabit network services. The number of 5G RedCap base stations also grew to 2.247 million.
Expansion in Computing Power and 5G Infrastructure
China’s intelligent computing capacity reached 2,185 EFLOPS using FP16 measurement during this period, reflecting a 177% increase over the previous year. The overall utilization rate of computing facilities stood at 71.4%. Additionally, China has developed 52 intelligent computing centers with deployments exceeding 10,000 accelerator cards. Across the nation, more than 80,000 private 5G industry networks are currently operational, with over 26,000 active projects integrating 5G and industrial internet technologies.
The electronics manufacturing sector experienced strong growth in production, revenue, and profits. Value-added output in this industry increased by 14.8% compared to last year. Leading electronic information manufacturers reported revenue of 12.15 trillion yuan, a 17.8% rise, while their combined profit grew by 66% to 703.6 billion yuan. Growth drivers included integrated circuits, computer manufacturing, and specialized electronic materials. Electronics output outpaced the overall industrial growth rate by 9.4 percentage points in this period.
Software and Internet Services Continue to Drive Industry Expansion
The growth of China’s software and information technology services sector persisted alongside digital manufacturing advancements. Revenue from these sectors increased by 9.5% in the first half of 2026. Software product revenue experienced a 6.9% rise, while IT services revenue grew by 10.4%. Major internet companies reported a 10.1% increase in revenue, and their profits rose by 16.6% compared to the same period last year. Telecommunications business volume, measured at constant prices, also grew by 8.3%.
During the first half of 2026, China’s digital sector outpaced the country’s broader economic growth, which was 4.7% according to the National Bureau of Statistics. The sectors of information transmission, software, and information technology services saw a 10.7% increase in added value. China’s digital industry encompasses electronic information manufacturing, telecommunications, software, IT services, and internet-related activities. Collectively, these segments generated trillions of yuan in revenue across the country during this period.