In the context of China’s deepening opening up and the growing complexity of international economic environment, the impact of global financial cycle (GFC) and global economic conditions (GECON) on the development of China’s industries cannot be overlooked. Based on this, this paper takes China’s ten industries as the research object, adopts the mixed frequency GARCHMIDAS model, and empirically examines the driving effect of global financial cycle and global economic conditions on the volatility of Chinese industries from the aspects of insample fitting and outofsample forecasting. The results show that, first, the global financial cycle, rather than global economic conditions, is the driver of longterm volatility in China’s industries. This conclusion holds true for most industries. Second, the upswing of the global financial cycle can elevate the volatility risk of China’s industries. The models that incorporate the GFC index demonstrate superior performance in both insample fitting and outofsample forecasting. Third, the financial, healthcare and utilities are significantly impacted by the global financial cycle, with over onethird of longterm volatility being attributable to it. The conclusion of this paper provides policy guidance for China to effectively prevent external risks and maintain the stable development of various industries.