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China’s Industrial Profits Edge Up

(MENAFN) During the first four months of 2025, Chinese industrial firms recorded a modest year-on-year profit increase of 1.4 percent, even as trade tensions between the United States and China continued to cast a shadow due to the imposition of mutual tariffs.

The resurgence was primarily led by the high-tech and equipment manufacturing industries.

Out of eight industrial sub-groups, seven registered profit expansions in the double digits.

Notably, the equipment manufacturing domain experienced an 11 percent surge in earnings during this period, contributing 3.6 percentage points to the overall improvement in the industrial sector, as reported by a state-backed television channel.

Sub-sectors such as general machinery and specialized equipment witnessed notable profit upticks of 11.7 percent and 13.2 percent, respectively.

Similarly, the home appliance industry, along with other consumer-related sectors, enjoyed robust double-digit profit rises.

Yu Weining, a statistician from the National Bureau of Statistics, attributed the economic gains to state-led strategies, including significant upgrades to industrial equipment and programs that encourage the replacement of older consumer products.

However, Yu also cautioned that "external uncertainties and weak domestic demand persist," stressing the importance of strengthening the foundations of recovery.

He pointed out that the current data reflects the durability of China's industrial sector, with emerging sectors filling in gaps left by older industries.

In the month of April alone, industrial profits rose by 3 percent compared to the previous year, marking the second straight month of improvement.

This momentum was fueled by policy support and strong performances in advanced manufacturing fields.

This profit uptick occurred despite instability in global commerce following U.S. Leader Donald Trump’s declaration of "reciprocal" tariffs on April 2, which intensified the already strained trade environment.

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