Private firms and old industries shrink while China's high-tech output grows

China's industrial output grew overall in the first four months of 2026. But this growth came from specific sectors, not across the board. High-tech manufacturing and electronics expanded, while traditional heavy industries and private companies saw slower growth or even shrank.

China wants to shift its economy from old, heavy industries to new, high-tech ones. These numbers show that shift is happening, but it is not smooth. The country is making more computers and electric vehicles. But it is making less cement and steel. This means the old engines of growth are sputtering. The new ones are not yet strong enough to carry the whole economy. Private companies grew slower than state-owned or foreign firms. This suggests where government support is going.