Chinese Machine Tool Orders Extend Into Next Year as First-Half Profits Rise 110.8%

Orders for machine tools produced in China have extended into the second quarter of the following year at several companies, as demand from emerging industries including AI computing infrastructure and new energy continues to grow, CCTV Finance reported on October 28.

China's machine tool industry recorded revenue of 530.9 billion yuan in the first half of 2026, up 7.6% year on year. Total profit rose 110.8% to 19.6 billion yuan. Some manufacturers also reported that output of their advanced equipment series exceeded twice their full-year output in the previous year.

Order growth and domestic content

Orders on hand for high-end five-axis machine tools increased 64.53% year on year. The domestic content rate for complete machines exceeded 90%, while the rate for core functional components was approximately 85%.

The order backlog points to demand extending beyond immediate deliveries, although orders on hand do not by themselves establish when equipment will be delivered or how much of the backlog will become revenue. The difference between the complete-machine and core-component figures also highlights the importance of tracking domestic capability at both levels.

For buyers and manufacturers, subsequent delivery schedules and production capacity will be relevant to how quickly the backlog is fulfilled. Whether the industry's profit growth continues will also depend on developments beyond the reported first-half results.