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China’s industrial profits grew at their strongest pace in months as AI-related manufacturing surged, though analysts warned of a growing economic divide. Earnings at large industrial companies jumped by more than 15% year-on-year in the first nine months of 2026 as China flooded the world with exports, triggering demands that Beijing cut back on its overcapacity. However, the domestic economy remains a drag: Consumer spending, weighed down by a property crisis, remains paltry, while a thin social safety net has turned many into savers. Though overall economic output remains within government targets, consumption and investment are adding very little, equating to “hollow growth,” according to one expert.
document fetched 2026-10-28 02:52 · canonical https://semafor.com/article/10/27/2026/chinas-industrial-profits-surge-amid-ai-buildout