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China’s resurgent internet sector posts strong profit growth in first 7 months of 2023, led by e-commerce and local services: MIIT report
- The Chinese internet industry’s aggregate profits rose 29.1 per cent year on year to US$11 billion in the January-to-July period
- Overall revenue for the sector grew 2.8 per cent in the same period to US$105.2 billion
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Ben Jiangin Beijing
China’s internet sector saw total profits rise significantly in the first seven months of the year, driven by the e-commerce and on-demand local services market segments, as major industry players went back into expansion mode after the government lifted rigid Covid-19 control measures and ended a 32-month regulatory crackdown.
The latest survey by the Ministry of Industry and Information Technology (MIIT) of so-called Chinese scaled internet services firms – those with an annual turnover of more than 20 million yuan (US$2.7 million), which include the sector’s largest players and various small providers – showed aggregate profits of 79.93 billion yuan in the January-to-July period, a 29.1 per cent increase from a year earlier.
Overall revenue for the sector grew 2.8 per cent year on year to 766.6 billion yuan in the same period, according to the MIIT report published late last month.
Those figures reflect the reinvigorated state of the country’s tech sector on the back of Beijing’s pro-growth policy for Chinese Big Tech companies.
That strong endorsement underscores Beijing’s push for the digital economy to help boost the country’s post-pandemic economic recovery, which has so far been uneven.
E-commerce firms saw their total revenue jump 42.4 per cent year on year in the January-to-July period, according to the MIIT report.
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