BEIJING, CHINA / RankWire.AI / – During the initial six months of 2026, China’s digital sector generated a total income of 20.71 trillion yuan, reflecting an increase of 13.6% compared to the same period last year. Meanwhile, the total profit reached 1.79 trillion yuan, which is 19.3% higher. China’s Ministry of Industry and Information Technology noted that the growth rate of revenue in the industry accelerated by 4.1 percentage points from the previous year, with profit margins expanding to 8.6%, up 0.7 percentage point.
The majority of the national digital industry’s revenue was generated by China’s largest digital hubs, with the top 10 provincial-level markets contributing a combined total of 17.21 trillion yuan, marking a 13.2% increase. These markets accounted for 83.1% of the country’s total digital revenue and drove 87% of overall growth. Among the leading regions were Guangdong, Jiangsu, Beijing, Shanghai, and Zhejiang. Central China alone registered digital industry earnings of 2.86 trillion yuan, which represents a 28.3% increase compared to the previous year.
In addition to revenue growth, digital infrastructure also saw substantial development over the same period. As of the end of June, China had installed 5.102 million 5G base stations, and the country supported 32.86 million 10G PON ports capable of delivering gigabit network services. The number of 5G RedCap base stations reached 2.247 million, and computing power expanded significantly to 2,185 EFLOPS measured with FP16, representing a 177% increase year-over-year. The overall utilization rate of computing resources climbed to 71.4%.
Expansion of Digital Infrastructure Across China
China had established 52 intelligent computing centers by the end of June, each equipped with more than 10,000 accelerator cards. The country also operated over 80,000 private networks dedicated to 5G industry applications. These technologies supported a wide array of applications across 94 major sectors of the national economy, which utilize 5G and gigabit optical networks. Furthermore, China had more than 26,000 active projects involving 5G and industrial internet, with authorities confirming the creation of 1,260 classified 5G factories nationwide.
In the realm of digital manufacturing, the first half of 2026 saw accelerated growth in both output and profits, with the electronics industry’s value-added output increasing by 14.8% year-on-year. The combined revenue of major electronic information manufacturers reached 12.15 trillion yuan, reflecting a 17.8% growth, while their overall profit surged by 66% to 703.6 billion yuan. Key contributors to this profit growth included sectors such as integrated circuits, computer manufacturing, and specialized electronic materials. The electronics sector’s output growth exceeded the broader industrial growth rate by 9.4 percentage points.
Software and IT Services Continue to Show Steady Expansion
The digital services segment in China also demonstrated robust growth during the first half of 2026. The total volume of telecommunications activities increased by 8.3% at constant prices compared to the previous year, with revenue from software and information technology services rising by 9.5%. Specifically, software product revenue grew by 6.9%, and IT services revenue advanced by 10.4%. Major internet companies experienced a 10.1% rise in revenue and a 16.6% increase in total profit compared to the same period in 2025.
These positive industry indicators coincided with ongoing advancements in technology-related services, which continued to outperform the overall economy, with China’s gross domestic product expanding by 4.7% during the first half of 2026, according to the National Bureau of Statistics. The sectors of information transmission, software, and information technology services experienced a 10.7% growth in added value. The digital industry in China encompasses electronic information manufacturing, telecommunications, software and IT services, as well as internet-based services, all of which form a vital part of the country’s broader digital economy.