Natixis Says China’s Power Surplus Gives It Edge In AI Race

Natixis has identified China’s ample power capacity as a rare corporate advantage in the global artificial intelligence race, even as its survey found Chinese firms still lagging overseas rivals on key profit measures.

Corporate health still below pre-pandemic levels

China’s corporate sector remains considerably weaker than it was before the Covid-19 pandemic, according to a Natixis survey of thousands of firms and a separate research report.

The French bank said China is nevertheless emerging as a key beneficiary of the global artificial intelligence boom because of its ample power capacity.

That power surplus has become a key advantage in the AI race, the bank said.

Margins stabilise, but gap remains wide

Profit margins at Chinese firms had stabilised at about 4.5 per cent for the first half of 2026, according to Natixis’ latest China corporate monitor presented on Tuesday.

Those margins remained well below the nearly 9 per cent recorded by global peers, the report said.

Returns on capital at Chinese firms hovered at around 6 per cent in the same period, compared with more than 11 per cent globally, according to the report.

The findings underline the gap between China’s corporate performance and that of overseas companies, even as the country gains from power availability linked to AI demand.

Survey compared thousands of firms

Natixis based its findings on a comparison of about 2,300 Chinese firms and 9,000 overseas counterparts.

The comparison was part of the bank’s latest China corporate monitor, which measured Chinese companies against global peers on profitability and returns on capital.

Together, the survey and research report present a mixed picture: weaker corporate health after the Covid-19 pandemic, but a potential AI-related advantage from surplus power capacity.

Source: South China Morning Post