China’s industrial profits unexpectedly fall in ominous sign for economy
- China's industrial profits experienced a 0.3% year-on-year decline in the first two months of 2025, according to official data released by the National Bureau of Statistics on Thursday, marking the third consecutive year of contraction.
- The profit decline occurred amid heightened global trade tensions, including newly imposed tariffs by U.S. President Donald Trump on cars 'not made in the U.S.' starting April 2, and persistent deflationary forces.
- While major industrial enterprises posted a combined profit of 911 billion yuan , revenue grew by 2.8 percent year-on-year, with sectors like general and special equipment manufacturing seeing increases of 6.0% and 5.9% respectively, boosted by government policies.
- Despite the overall profit decline, some sectors experienced growth, including automobile manufacturing and intelligent consumer equipment manufacturing which saw a profit increase of 125.5 percent, driven by government trade-in policies.
- NBS statistician Yu Weining acknowledged that some industrial enterprises still face difficulties and called for continued efforts to ramp up domestic demand and boost the development of new quality productive forces, as the uneven start to the year maintains pressure on policymakers to ramp up stimulus to achieve Beijing's growth target of 'around 5%'.
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Leaning Left3Leaning Right0Center2Last UpdatedBias Distribution60% Left
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