China’s industrial profit machine just posted its most impressive monthly figure in recent memory. April’s 24.7% year-on-year increase marks a sharp acceleration from an already strong first quarter, powered by two forces that rarely push in the same direction: surging AI-related demand and rising crude oil prices.
The number builds on a trend that’s been gaining momentum all year. March saw industrial profits climb 15.8% year-on-year, up from 15.2% across January and February. The full first quarter delivered a 15.5% increase, with total profits hitting approximately 1.696 trillion yuan, roughly $247.3B.
AI and semiconductors are doing the heavy lifting
High-tech manufacturing, particularly semiconductors and robotics, has been the standout performer. Global appetite for AI hardware continues to grow at a pace that makes even optimistic forecasts look conservative. Chinese manufacturers positioned in the AI supply chain are capturing a significant share of that demand, and it’s showing up directly in their bottom lines.
Equipment manufacturing has been another bright spot, benefiting from both domestic infrastructure investment and export orders tied to automation and intelligent systems.
