CHINA's industrial profits returned to growth in the first quarter, official data showed but are likely to come under further pressure amid a trade war with the United States
CHINA's industrial profits returned to growth in the first quarter, official data showed but are likely to come under further pressure amid a trade war with the United States. With Washington's aggressive tariffs threatening to hit China's crucial export engine and no time frame yet for any bilateral trade talks, economists and investors are waiting for the Chinese government to roll out more support measures to cushion the blow to the world's second-largest economy.
Cumulative profits of China's industrial firms rose 0.8 per cent to CNY1.5 trillion (US$205.86 billion) in the first quarter from a year earlier, the National Bureau of Statistics (NBS) data showed, reversing a 0.3 per cent decline in the first two months.
In March alone, profits rose 2.6 per year on year, according to Reuters.
The profit gain in the first quarter followed a 3.3 per cent fall in 2024, reversing the trend of continuous declines in cumulative profits of enterprises since the third quarter of last year, Yu Weining, an NBS statistician, said in a separate statement along with the data release.
Thanks to a consumer goods trade-in campaign, profits in the wearable smart device manufacturing sector soared by 78.8 per cent while those for household kitchen appliance makers rose 21.7 per cent, said the statement.
China reported stronger-than-expected economic growth in the first quarter as government stimulus boosted consumption and supported investment, but deflationary pressures persisted, ripping into corporate profits and workers' incomes as firms tried to navigate rising trade disruptions.
'At the current stage, the external environment is becoming more complex and severe, and unstable and uncertain factors are increasing,' said Ms Yu, adding the government will further strengthen policy implementation and promote the continuous improvement of corporate profitability.
The ruling Communist Party's Politburo last week pledged to support firms and workers most affected by the impact of US tariffs, also saying new monetary tools and policy financing instruments will be set up to boost innovation, consumption and foreign trade.
SeaNews Turkey
