China’s Tech Titans Soar: Explosive Profits Spark Digital Revolution in first 7 months of 2023

China profit growth in first 7 months of 2023
Image Source: scmp


  • Beijing’s pro-growth policies and the easing of Covid-19 measures drive the resurgence.
  • Alibaba reports a significant 14% revenue increase, reflecting industry resilience.
  • Meituan, a food delivery giant, sees a meteoric 30% rise in revenue.
  • Information services experienced a 2.6% dip, highlighting sector diversity.
  • China boasts 2.61 million operational applications, reinforcing its tech powerhouse status.

In the initial seven months of this year, China’s cyberspace and China’s internet sector witnessed a substantial surge in cumulative profits. China’s internet sector profit growth

was predominantly catalyzed by the e-commerce and the on-demand local services sectors. As major industry players regained their expansion momentum, they did so in the wake of the government’s easing of stringent Covid-19 control measures and the cessation of a rigorous 32-month regulatory crackdown.

The Ministry of Industry and Information Technology (MIIT) recently conducted a comprehensive survey encompassing China’s substantial internet service firms. These entities, with an annual revenue surpassing 20 million yuan (equivalent to US$2.7 million), comprise both the industry’s behemoths and a multitude of smaller providers.

According to the survey the results showed China’s internet sector profit of 79.93 billion yuan from January to July. It represents an impressive increase of China’s internet sector profit of 29.1 percent compared to the previous year.

The MIIT’s report, published towards the close of last month, further illuminates the scenario, disclosing an overall revenue growth rate of 2.8 percent year-on-year, accumulating to a total of 766.6 billion yuan during the same period.

These statistics serve as a measure of the state of China’s technology industry and China’s internet sector profit. It is  driven by Beijing’s dedication to fostering growth and providing support to the country’s leading tech firms.

This support from the government underlines Beijing’s strong commitment to using the digital economy as a fulcrum. It will accelerate China’s internet sector profit and the country’s post-pandemic economic recovery, which has so far shown some degree of unevenness.

E-commerce entities, in particular, witnessed a meteoric 42.4 percent surge in total revenue for the January-to-July window, as corroborated by the MIIT’s report.

Alibaba Group Holding, renowned as the nation’s foremost e-commerce services provider, recently disclosed its most substantial year-on-year revenue upswing in over a year. Amid China’s vigorous economic revival endeavors, Alibaba, the parent company of the South China Morning Post, registered a remarkable 14 percent revenue spike during the June quarter, amassing a total of 234.16 billion yuan.

The local services market segment, comprising on-demand food delivery platforms and online travel agencies, painted a similarly encouraging picture. For the initial seven months of this year, these players collectively observed an impressive 11.6 percent revenue growth.

A case in point is Chinese food delivery juggernaut Meituan, which reported a remarkable 30.2 percent year-on-year surge in first-half revenue, accruing to an impressive sum of 126.5 billion yuan.

On the other hand, providers in the information services domain, which constitutes one of the three primary internet market segments tracked by the MIIT, experienced a decline in total revenue, contracting by 2.6 percent during the January-to-July period.

Based on the data, from MIIT there are 2.61 million apps available in the mainland as of the end of July. Furthermore within that timeframe it was found that there are 830,000 app developers located nationwide.

In a separate announcement, the MIIT unveiled an extensive working agenda, spanning from 2023 to the end of 2024, designed to bolster China’s electronic information industry. The MIIT categorizes this sector as the “strategic, foundational, and frontier industry of the national economy.”

China’s strategy goes beyond developing the economy; it also includes advancing fields, like semiconductors and state of the art display technologies. Additionally the country aims to strengthen the supply chain, for materials, equipment and components involved in these areas.

The MIIT has plans to boost the sales of 5G smartphones, which are expected to make up 85 percent of China’s mobile phone shipments by 2024. Furthermore the agency aims to achieve a growth rate of 5% in the sectors of computer manufacturing, telecommunications and electronic equipment production during the period between 2023 and 2024.

The MIITs proposal includes measures aimed at supporting the industry, such as providing tax incentives, implementing funding initiatives, attracting talent and enforcing policies.

Source(S): scmp

Adam Pierce

Adam Pierce is a seasoned technology journalist and professional content writer who has a genuine passion for delivering the latest tech news and updates. With a wealth of experience in the field, Adam is committed to providing NwayNews readers with accessible, informative, and engaging content. He aims to keep readers well-informed about the latest breakthroughs, gadget releases, and industry trends through his articles.

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