China's digital industry has entered 2026 in very strong shape. According to data from China's Ministry of Industry and Information Technology, the industry's sales reached 9.5 trillion yuan (approximately $1.39 trillion) in the first quarter, representing a year-on-year growth of 12.9 percent.

The growth rate accelerated by 3.5 percentage points compared to the same period last year, confirming the continued dynamism of one of the most important pillars of the Chinese economy.

Profits grew even more strongly. The digital industry's total profit reached 737.8 billion yuan in the first three months of the year. Compared to last year, this represents an increase of 23.6 percent, with a growth rate of 16.6 percentage points.

This positive development is due, among other things, to the rapid expansion of digital infrastructure. The number of 5G base stations in China exceeded 4.9 million at the end of March. The country is thus further consolidating its position as a world leader in building next-generation networks.

The production of electronics also recorded significant growth. Value-added output of large enterprises in the electronic information technology sector increased by 13.6 per cent year-on-year in the first quarter.

The software sector also showed stable results. Its revenues grew by 11.7 percent year-on-year, reflecting continued strong demand for digital services, cloud solutions and technological innovation.

The digital economy has become one of the main engines of China's growth in recent years. The development of 5G networks, artificial intelligence, data centres and software services is supporting not only the modernisation of industry but also the competitiveness of the entire economy.

CMG