Chinese firms trail global peers on profits, but AI power boom offers bright spot: Natixis

AI Summary

A Natixis survey and research report find that Chinese companies’ profit margins remain weak, at about 4.5% in the first half of 2026, compared with nearly 9% for global peers. China may nevertheless benefit from the AI boom because its ample power capacity can support rising demand for AI infrastructure.

China’s corporate sector remains considerably weaker than it was before the Covid-19 pandemic, but the country is emerging as a key beneficiary of the global artificial intelligence boom thanks to its ample power capacity, according to a Natixis survey of thousands of firms and a separate research report. Profit margins at Chinese firms had stabilised at about 4.5 per cent for the first half of 2026, but remained well below the nearly 9 per cent recorded by their global peers, according to the...