Profits for major industrial companies in China saw a slight increase in April, according to data released by the National Bureau of Statistics (NBS) on Tuesday. This upturn, particularly notable in high-tech manufacturing, highlights both the resilience of the Chinese economy and its ongoing structural enhancements.

Specifically, net profits among major enterprises above the designated size rose by 3.0 percent year-on-year in April, an improvement of 0.4 percentage points from March. During the first four months of the year, these companies recorded a 1.4 percent growth in profits, which is a 0.6 percentage point acceleration compared to the first quarter. Of the 41 major industrial sectors evaluated, 23 reported profit increases, with nearly 60 percent experiencing improved income.

The high-tech manufacturing sector emerged as a significant growth factor, with profits increasing by 9.0 percent in the first four months, representing an acceleration of 5.5 percentage points compared to the first quarter. Key areas contributing to this growth are bio-medicine, aircraft manufacturing, and semiconductor equipment production, all benefiting from the 'AI Plus' initiative and a nationwide digital transformation.

Notably, the semiconductor special equipment manufacturing sector recorded an exceptional 105.1 percent increase. This growth was mirrored by electronic circuit production and integrated circuit manufacturing, which saw profit increases of 43.1 percent and 42.2 percent, respectively. Additionally, the smart automotive equipment sector displayed remarkable resilience with a staggering 177.4 percent profit increase.

Profit growth was also evident in the drone manufacturing sector, which achieved a significant 167.9 percent rise, while the wearables industry reported an impressive profit increase of 80.9 percent. The overall equipment manufacturing sector also showed strong performance, with profits rising by 11.2 percent during the first four months, further bolstering the industrial growth narrative as reported by the NBS.

Government policies enhancing economic growth, such as large-scale equipment renewal and consumer trade-in programs, have played a vital role. Profits for specialized and general equipment manufacturing rose by 13.2 percent and 11.7 percent, respectively, while the home appliance sector enjoyed over a 15 percent profit expansion due to these policy stimulations.

"The steady recovery of industrial profits among major enterprises from January to April reflects a strong resilience and ability to absorb shocks," noted NBS statistician Yu Weining in a press release. He also pointed to the need for promoting integrated development in both scientific innovation and industrial sectors, optimizing industrial structures, and accelerating the transformation of traditional industries while supporting emerging sectors.

Wang Peng, an associate research fellow at the Beijing Academy of Social Sciences, commented on the industrial sector's robust performance, highlighting the noteworthy growth rates of the high-tech and equipment manufacturing sectors at 9.0 percent and 11.2 percent, respectively, which reaffirm China's path toward successful industrial upgrading.

Sustaining factors for this industrial growth, as Wang mentioned, include ongoing policy support that provides essential buffers against international challenges, coupled with initiatives like equipment renewals and consumer upgrades that perpetuate demand across industrial segments. The ongoing shift toward AI-powered manufacturing also serves as a vital growth impetus, particularly evident in semiconductor and smart device production.

Throughout 2023, China's industrial sector has maintained strong performance as a crucial driver of stable economic expansion. By April, the value-added output of industrial enterprises above designated size rose by 6.1 percent year-on-year, with over 80 percent of evaluated industrial sectors reporting growth.

NBS spokesperson Fu Linghui attributed this enduring growth momentum to sustained macroeconomic policies, initiatives aimed at stimulating domestic demand through large equipment renewals and consumer goods trade-ins, as well as advancements in innovation-driven industrial upgrades. Looking forward, there's an expectation for the industrial sector to evolve toward high-end, intelligent, and environmentally friendly development.

Local governments across China are actively broadening their incentives for equipment renewals and trade-in programs to stimulate market activity and unlock consumer potential. For instance, Hebei Province has expanded its trade-in program to include additional categories of home appliances, utilizing over 20 billion yuan in subsidies this year to achieve sales surging past 10 billion yuan.