China's High-Tech Surge: Profits Up 47%, Drones and Smart Devices Shatter Records

China's industry in the first quarter of 2026 showed not just growth, but a qualitative shift toward high technology. According to the National Bureau of Statistics, total profits of large industrial enterprises rose by 15.5% to 1.696 trillion yuan ($248 billion).

But the real story lies within the structure. High-tech manufacturing surged by 47.4%, contributing 7.9 percentage points to overall growth. Profits in the electronics industry soared by 124.5%. Manufacturers of intelligent drones posted a 53.8% increase, while smart consumer goods producers jumped by 67.3%.

Equipment manufacturing — the backbone of the industrial drive — grew by 21%, now accounting for one-third of the country's total industrial profits. The railway, shipbuilding, and aerospace sectors accelerated to 16.7%.

Chen Xi from the Academy of Macroeconomic Research emphasized that both quality and efficiency are improving simultaneously, and the shift toward new growth drivers is gaining momentum.