China's industrial profits grew at a faster pace in the opening months of the year, official data showed on Friday, as enterprises navigate a more favorable environment created by new government macroeconomic policies.

China's industrial enterprises with an annual revenue of at least 20 million yuan ($2.89 million) saw their total profits jumped 15.2 percent year-on-year to 1.02 trillion yuan in the first two months of 2026, supported by the strengthening of equipment manufacturing and high-tech sectors, according to data from the National Bureau of Statistics.

The latest data mark a sharp acceleration from last year, when industrial profits edged up 0.6 percent for the whole of 2025. In December alone, profits increased 5.3 percent year-on-year.?

NBS statistician Yu Weining said the industrial sector extended its recovery at the start of the year thanks to the more proactive macroeconomic policies.?

"The combined impact of existing and incremental policy measures has continued to emerge, leading to faster profit growth among major industrial firms, with most sectors reporting improved earnings," Yu said.

"In particular, profits in equipment manufacturing and high-tech manufacturing registered rapid growth, highlighting a continued improvement in the performance and efficiency of industrial enterprises."

According to the NBS, profits in equipment manufacturing industries surged 23.5 percent year-on-year during the first two months, 15.8 percentage points higher than that in 2025. Profits in high-tech manufacturing jumped 58.7 percent during the same period, accelerating by 45.4 percentage points from 2025.?

During the first two months, profits recorded by mining firms increased by 9.9 percent year-on-year, and profits registered by manufacturing companies rose by 18.9 percent year-on-year. Meanwhile, profits recorded by industrial firms that offer supplies of electricity, heat, gas and water grew by 3.7 percent.?

According to the NBS data, State-owned firms saw earnings surge 5.3 percent year-on-year in the first two months. Private-sector companies enjoyed a 37.2 percent rise, while entirely foreign-owned firms recorded a 3.8 percent dip.?

Despite the strong start,?NBS statistician Yu cautioned that the external environment remains volatile, with rising spillover risks from geopolitical tensions and mounting uncertainties.?Domestically, profit recovery among industries is still uneven amid the ongoing economic transition.?

Looking ahead, Yu said policymakers will step up efforts to implement the priorities set out at the Central Economic Work Conference and the annual two sessions, focusing on expanding domestic demand, optimizing supply, fostering new quality productive forces tailored to local conditions, and advancing the development of a unified national market, in a bid to sustain the steady and healthy growth of the industrial economy.

ouyangshijia@chinadaily.com.cn?