BEIJING, CHINA / RankWire.AI / – In the first half of 2026, China’s digital economy generated 20.71 trillion yuan in revenue, marking a 13.6% increase compared to the same period last year. Profits grew by 19.3%, reaching 1.79 trillion yuan. According to the Ministry of Industry and Information Technology, the sector’s profit margin stood at 8.6%, which is 0.7 percentage point higher than the previous year. These figures encompass key segments of China’s rapidly expanding digital landscape.
Throughout the six months, China’s top regional digital markets continued to lead industry performance. The ten leading provincial-level markets collectively contributed 17.21 trillion yuan in revenue, reflecting a 13.2% rise from the previous year. These markets accounted for 83.1% of the nation’s total digital industry revenue and drove 87% of the sector’s overall growth. Guangdong, Jiangsu, Beijing, Shanghai, and Zhejiang maintained their status as some of the country’s major digital industry hubs.
Central China outpaced the national average in digital expansion, with regional revenue reaching 2.86 trillion yuan—an increase of 28.3% year-on-year. The country continued to enhance its communications and computing infrastructure during this period. By June, China had installed 5.102 million 5G base stations and supported 32.86 million 10G PON ports that enable gigabit network services. Additionally, the number of 5G RedCap base stations reached 2.247 million.
Expansion of Computing Capabilities and 5G Networks
China’s intelligent computing capacity reached 2,185 EFLOPS measured in FP16 during this period, representing a 177% increase over the previous year. Overall utilization of computing facilities stood at 71.4%. The country has also established 52 intelligent computing centers, each deploying more than 10,000 accelerator cards. Over 80,000 private 5G industry networks are operational across China, with authorities reporting more than 26,000 active projects integrating 5G with industrial internet technologies nationwide.
The electronics manufacturing sector experienced notable growth in output, revenue, and profits. The added value of electronics production increased by 14.8% from a year earlier. Major electronic information producers generated 12.15 trillion yuan in revenue, a 17.8% rise, while combined profits surged 66% to 703.6 billion yuan. Growth was driven by industries such as integrated circuits, computer manufacturing, and specialized electronic materials. During the same period, electronics output growth surpassed the overall industrial expansion by 9.4 percentage points.
Software Development and Internet Services Continue to Grow
China’s software and IT services sector maintained its upward trajectory, with sector revenue increasing by 9.5% in the first half of 2026. Revenue from software products grew by 6.9%, while IT services revenue expanded by 10.4%. Leading internet firms reported a 10.1% rise in revenue, with their total profits increasing 16.6% compared to the same period last year. Telecommunications business volume also saw an 8.3% increase when measured at constant prices.
The growth rate of China’s digital industry outpaced the country’s overall economy during the initial six months of 2026. The National Bureau of Statistics recorded a gross domestic product growth of 4.7% for the period. The sectors of information transmission, software, and information technology services contributed a 10.7% increase in added value. The digital industry encompasses electronic information manufacturing, telecommunications, software, information technology services, and internet-related businesses, collectively generating trillions of yuan in revenue across China during this timeframe.