China’s industrial economy up 6.1% in Q1

China’s industrial and IT economy surged ahead in the first quarter of 2026, with added value from industries above designated size climbing 6.1% year-on-year. Vice Minister of Industry and Information Technology (MIIT) Zhang Yunming said Tuesday that all 31 provinces logged positive growth, more than 80% of industries expanded, and the sector contributed nearly 40% to overall economic growth.

At the State Council Information Office press conference, Zhang outlined first-quarter achievements.

The MIIT vice minister said, “Despite growing uncertainty abroad, China’s industrial economy is on solid ground, thanks to its full-fledged industrial system […] Going forward, the focus will be on steady growth, innovation, and integration. The goal is a stronger industrial economy and a good start to the 15th Five-Year Plan period from 2026 to 2030.”

Zhang announced that total telecommunications business volume rose 8.3% year-on-year in China, up 0.6 percentage points from last year. Meanwhile, software and IT services revenue jumped 11.7% in January-February, 1.8 percentage points higher than the prior year.

“The added value of high-tech manufacturing above designated size increased by 12.5% year-on-year […] The output of products such as industrial robots and integrated circuits increased by 33.2% and 24.3% year-on-year, respectively,” Zhang said.

On advanced manufacturing, Zhang said this area “has accelerated, further releasing industrial vitality.”

Equipment manufacturing’s share in industrial added value rose 1.4 percentage points year-on-year. Sixteen cities joined as national new industrialization demonstration zones, bringing the total to 179 high-tech zones.

Intelligent upgrades also advanced, with 37 “challenge-based” projects accepted, seven new national standards, and two industry standards released.

Tough as Steel

China’s steel sector showed resilience in the first quarter of 2026, despite declining output of major products like crude steel and steel products. “The steel industry still achieved a positive growth of 2.5% in industrial added value,” Zhang stated.

He added that performance signals higher value created per ton of steel, “making the steel backbone of the manufacturing industry more resilient.”

In terms of key products, output of ten commonly used non-ferrous metals increased by 3.6%, and output of ethylene, fertilizers, and refined copper all increased by more than 5%.

From January to February, profits of raw materials industries above designated size increased by 45.6% year-on-year, with a profit margin of 4.2%, 1.2 percentage points higher than the same period last year.

On green efforts, Zhang said 2,038 new green factories and 128 green parks were added.

Network Coverage Advances

Per Xie Cun, MIIT spokesperson and director of the Information and Communications Development Department, information infrastructure continued to advance.

Xie detailed, “As of the end of March, the total number of 5G base stations nationwide has reached 4.958 million, and the number of 10G PON ports with gigabit network service capabilities has reached 32.01 million. 168 communities, factories, and industrial parks in 86 cities across the country have carried out pilot deployments of 10-gigabit optical networks, and 5G-A (5G evolution network) has now covered 330 cities.”

He added the mobile Internet of Things (IoT) is “booming,” with 2.948 billion terminal users.

Per MIIT, China has achieved “gigabit access in every county and 5G in every township,” with 100% broadband coverage and over 95% 5G coverage in villages, as well as full 4G/5G coverage at border sites.

Deep network coverage has been achieved in 269,000 key locations nationwide, and continuous network coverage has been achieved along 654,000 kilometers of highways and railways and 316 subway lines.

“Everyone should be able to deeply feel this change and improvement,” Xie said.

Outlining next steps, Xie announced that MIIT will accelerate 5G-A commercialization, 10-gigabit optical pilots, “dual-gigabit” to “dual-10-gigabit” evolution, and mobile IoT “intelligent interconnection of everything.”

Xie said MIIT will also advance 6G/next-generation internet R&D and industry-vertical collaborations.