China’s High-Tech Manufacturers Lead Profit Surge with 18.9% Growth in July

China’s high-tech manufacturing sector posted strong profit growth in July, rising 18.9% year-on-year, even as overall industrial firms continued to face mild declines. The rebound highlights the role of advanced industries in supporting the country’s economic recovery.
From January to July, major industrial firms with annual revenue above 20 million yuan ($2.8 million) recorded combined profits of 4.02 trillion yuan, down 1.7% year-on-year. In July alone, profits slipped 1.5%, but the decline narrowed compared to June, marking a second consecutive month of improvement.
High-tech industries were the standout performers. Aerospace and aviation equipment manufacturing profits jumped 40.9%, while the semiconductor sector saw explosive gains: integrated circuits surged 176.1%, semiconductor equipment 104.5%, and discrete devices 27.1%.
Small and medium-sized enterprises (SMEs) also showed a turnaround. Medium-sized firms shifted from a 7.8% drop in June to a 1.8% gain in July, while small enterprises swung from a 9.7% decline to a 0.5% increase, signaling stronger resilience in private sector-led industries.
Government-driven equipment upgrades and consumer goods trade-in programs further boosted profitability, supporting steady industrial production and moderating price recovery.