China’s manufacturing and industrial sectors demonstrated remarkable strength in the first nine months of 2025, fueling overall economic growth despite slower consumer activity. According to the National Bureau of Statistics (NBS), major industrial firms above the designated size posted operating income growth of 2.4% year-on-year, while total profits for the January–September period reached 5.37 trillion yuan, up 3.2%, the fastest growth since August last year. High-tech manufacturing stood out as a key driver, with profits rising 8.7% year-on-year and contributing significantly to the overall industrial profit increase.
High-Tech Sector Leads Growth
September proved particularly strong for the high-tech sector, with profits surging 26.8%, accounting for a substantial share of total industrial profit growth. Aerospace equipment manufacturing recorded an 11.3% gain, while advances in automation and intelligent technologies propelled profits in smarter devices, electronic components, and specialized electronic equipment by 81.6%, 39.7%, and 25.5% respectively. Optical and precision instrument manufacturing also saw gains of 45.2% and 17.5%, reflecting widespread growth across high-tech industries.
Experts highlight that the robust performance stems from a combination of industrial innovation, policy support, and a highly skilled workforce. China has implemented numerous measures, including financial and fiscal incentives, to stimulate technological advancement, boost R&D investment, and enhance global competitiveness. Universities and research institutes have strengthened innovation capabilities, cultivating talent that supports rapid industrial upgrading and the large-scale application of new technologies.
Broader Manufacturing Trends
The broader manufacturing sector also contributed to growth, with profits up 9.9% year-on-year in the first nine months, while electricity, heat, gas, and water production and supply industries rose 10.3%. The mining sector saw a 29.3% decline, although the drop narrowed compared to earlier months. In September alone, profits for major industrial enterprises increased 21.6%, slightly faster than the growth recorded in August, highlighting the sustained momentum of industrial recovery.
China’s massive manufacturing base, diversified industrial structure, and well-developed supply chains continue to create favorable conditions for innovation-driven growth. By translating scientific achievements into real productivity, the high-tech and industrial sectors remain central to the country’s economic strategy.
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