{
  "id": 10861242,
  "title": "Chinese firms trail global peers on profits, but AI power boom offers bright spot: Natixis",
  "url": "https://urgent.news/2026/09/30/chinese-firms-trail-global-peers-on-profits-but-ai-power-boom-offers",
  "topic": "ai",
  "section": "AI",
  "published": "2026-09-30T05:00:10.000Z",
  "source": {
    "name": "South China Morning Post",
    "slug": "south-china-morning-post",
    "url": "https://www.scmp.com/business/china-business/article/3369282/chinese-firms-trail-global-peers-profits-ai-power-boom-offers-bright-spot-natixis"
  },
  "original_language": "en",
  "account": "China's corporate sector lags behind global competitors, but the country stands to benefit from the global artificial intelligence boom. Natixis, a French bank, surveyed thousands of firms and found that Chinese firms' profit margins stabilized at about 4.5% in the first half of 2026, while their global peers recorded nearly 9%. Returns on capital for Chinese firms stood at around 6% during the same period, compared to over 11% globally, according to Natixis' latest China corporate monitor.\n\nChief economist Alicia Garcia Herrero highlighted the \"duality of the Chinese economy,\" which extends beyond macroeconomic data and is deeply rooted in corporate governance. The disparities between state-owned enterprises (SOEs) and private firms are evident, with SOEs benefiting from favorable borrowing conditions due to lower interest burdens (2.2% versus 3.2% for private firms). However, private companies are more profitable.\n\nDespite these challenges, Chinese firms continue to face difficulties in revenue generation and capital returns. Nonetheless, the debt burden of Chinese firms has significantly decreased, which is a positive sign. Natixis economist Haoxin Mu emphasized China's strength in the AI era, stating that the country's ample power capacity would enable it to easily power AI data centers. Mu estimated that AI data centers would account for only about 5% of China's annual increment in power consumption, compared to much higher percentages in other major economies.\n\nThis means that nearly half of the additional energy needed to meet future demand growth in the US could be absorbed by AI data centers in China. The segment has become a key engine for China's export growth, with power equipment exports to AI data centers surging in recent years.",
  "summary": "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…",
  "key_points": [
    "Chinese firms' profit margins at 4.5%, below global peers' 9%",
    "Chinese firms' returns on capital at 6%, compared to 11% globally",
    "China's AI data centers to meet 5% of additional power demand growth"
  ],
  "editors_take": "China's ample power capacity, which can easily support AI data centers, offers a bright spot for the country's firms, which otherwise lag global peers on profits and returns on capital.",
  "illustration": null,
  "coverage": {
    "outlets": 2,
    "also_reported_by": [
      {
        "outlet": "SCMP Business",
        "title": "Chinese firms trail global peers on profits, but AI power boom offers bright spot: Natixis",
        "url": "https://urgent.news/2026/09/30/chinese-firms-trail-global-peers-on-profits-but-ai-power-boom-offers-10862565",
        "published": "2026-09-30T05:00:10.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}