US EditionChina’s industrial profits plunge 9.1%, steepest fall in seven months
CHINA, JUN 27 – China's industrial profits fell 9.1% in May due to deflation, US tariffs, and price wars, despite a 10.6% rise in equipment manufacturing profits, National Bureau of Statistics data showed.
- China's major industrial enterprises reported a 9.1 percent profit decline in May 2025, the sharpest drop since October 2024.
- This decline followed a 1.1 percent profit slip in the first five months caused by insufficient demand, falling product prices, and short-term factors.
- Mining profits dropped by 29 percent in the first quarter compared to the previous year, while automakers experienced an 11.9 percent decline in earnings during the period from January through May, affected by intense price competition and excess production capacity.
- According to strategist Xing Zhaopeng, US tariffs on raw materials have pressured prices, while intense competition within the domestic market has reduced profit margins.
- The profit slump amid deepening factory-gate deflation highlights the necessity for more government stimulus to support fragile economic recovery.
26 Articles
26 Articles
The Chinese industry's profits recorded an annual decrease of 9.1% in the month, the strongest of the last seven months, in accordance with the data published by the National Bureau of Statistics, the figures reflecting the limits of Beijing's economic incentives, which have so far not been able to recover significantly the profitability of companies, are transmitted to the CNBC.
China faces economy-wide deflation
China faces economy-wide deflation, new data suggested, exacerbated by a bruising price war in the automotive industry. Industrial profits fell 9.1% in May, the sharpest fall in months, and “momentum is clearly rolling downhill,” FX Street reported. Deflation is a concern because it incentivizes consumers to delay purchases, slowing the economy. China’s electric vehicle companies are locked in a race to the bottom on prices, as oversupply and we…
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