Industries with the Biggest Increase in Profit Margin in China in 2026

• 1. Bus Transportation in China

  Percentage Point Increase for 2026: 2.1pp

  Revenue for the Bus Transportation industry is expected to grow at an annualized 1.7% over the five years through 2025. This trend includes anticipated revenue rise of 1.2% in the current year, to $16.0 billion. The COVID-19 pandemic resulted in significant decreases in 2020 and 2022. The industry is expected to include 3,702 bus transportation establishments in 2025, employing approximately 922,999 people. However, industry enterprises are governed by local governments, which standardizes th...

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• 2. Household Electrical Appliance Manufacturing in China

  Percentage Point Increase for 2026: 0.2pp

  In 2025, revenue for the Household Electrical Appliance Manufacturing industry in China is expected to total $57.3 billion, up by 4.1% from 2024. Industry revenue is expected to increase at a CAGR of 1.7% over the five years through 2025. Affected by COVID-19 and the slowdown of the real estate industry, the development of house electrical appliances industry slowed down its growth, especially in 2020 and 2022, with industry revenue decreasing by 5.8% and 5.0%, respectively. In 2024, the effe...

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• 3. Railway Equipment Manufacturing in China

  Percentage Point Increase for 2026: 0.2pp

  China's railway transport system is owned and operated by the Government. As a result, government investment in rail transportation is crucial for the Railway Equipment Manufacturing industry's long-term development. China State Railway Group Co., Ltd. (China Railway) is the main purchaser of industry products, which are largely supplied by state-owned operator, CRRC. The dominance of the company makes the industry a virtual monopoly, with over 95% of total industry revenue.
  A recovery i...

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• 4. Solar Power Generation in China

  Percentage Point Increase for 2026: 0.2pp

  Under the background of global energy transforming from traditional energy to renewable energy, the Government in China has been issuing industry assistance policies to promote fast development of solar power generation. The Solar Power Generation industry in China has grown significantly over the past five years. Industry revenue is expected to increase at an annualized 16.7% over the five years through 2025, to $42.2 billion. This trend includes anticipated revenue growth of 16.8% in 2025. ...

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• 5. Storage & Warehousing in China

  Percentage Point Increase for 2026: 0.1pp

  Revenue for the Storage and Warehousing industry is expected to grow at an annualized 3.7% over the five years through 2025, to total $118.9 billion. This includes anticipated growth of 4.0% in the current year.
  Industry demand has been strong since China's entrance to the World Trade Organization (WTO) in 2001. Many foreign logistics resources and industry expertise entered the Chinese market, which improved service quality and accessibility and increased demand for warehousing services...

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• 6. IT Services in China

  Percentage Point Increase for 2026: 0.1pp

  The IT Services industry in China has performed well over the past five years, due to the application of new technologies, like cloud computing, big data, AI and the Internet of Things. The growth in IT investment and of China's information sector has boosted industry demand. Industry revenue is expected to grow at an annualized 8.2% over the five years through 2025, to total $448.2 billion. This trend includes anticipated growth of 3.0% in the current year.
  Industry revenue increased sl...

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• 7. Basic Plastics and Synthetic Resin Manufacturing in China

  Percentage Point Increase for 2026: 0.1pp

  China is now the world’s largest producer and consumer of basic plastics and synthetic resins. Revenue for the Basic Plastics and Synthetic Resin Manufacturing industry is expected to grow at an annualized 2.7% over the five years through 2025, to total $195.6 billion. This expansion is largely due to the development of the downstream industries, like plastic products manufacturing, a key consumer of industry’s products. However, industry revenue has been volatile in the past five years, main...

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• 8. Paint Manufacturing in China

  Percentage Point Increase for 2026: 0.1pp

  Revenue for the Paint Manufacturing industry in China is expected to rise at a CAGR of 4.7% over the five years through 2025, due to the growing demand from downstream industries. Industry revenue has deceased for a few years due to the repeated COVID-19 epidemic and the intensified price competition. In 2025, industry revenue is set to recover and grow by 3.0% to reach $59.2 billion. The output of paint and coatings in China will also increase at a CAGR of 7.8% in the same period, to 35.9 mi...

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• 9. Dairy Product Production in China

  Percentage Point Increase for 2026: 0.1pp

  China is the fourth-largest milk producer in the world in 2020, after India, the United States and Pakistan. However, per capita consumption of dairy products in China is less than one-third of the global average and lower than in many other developing countries. Due to traditional Chinese dietary patterns and lower living standards, the routine consumption of dairy products is limited across the country.
  Moreover, dairy product consumption varies considerably across China. Consumption i...

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• 10. Iron and Steel Smelting in China

  Percentage Point Increase for 2026: 0.1pp

  Revenue for the Iron and Steel Smelting industry has fluctuated over the past five years, growing 5.6% in 2020 and declining 2.5% in 2021. Industry revenue is expected to increase at an annualized 0.4% over the five years through 2025, to $64.6 billion. Profit margins are expected to increase to 3.5% of industry revenue in 2025.
  Total domestic demand has declined since 2012, but total output has gradually increased, thereby worsening oversupply conditions. Furthermore, the prices of stee...

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