China's Industrial Profit Growth Slows Amid AI Export Boom

China's industrial profits grew by 18.7% in the first half of 2026, but the growth slowed to 15.1% in June.

This slowdown is partly offset by a huge increase in exports related to artificial intelligence (AI), which reached $720 billion in the last year.

Exports of chips, computers, and power equipment are at record highs, helping China's economy.

However, some industries like automobiles are struggling, and domestic demand is weak.

Economists hope that continued profit growth could lead to higher wages and better economic conditions overall.

Investors are waiting to see if the government will provide more support, but so far, exports have been strong enough to avoid major stimulus measures.