China Corporate Profits

Profits at China’s industrial firms declined 1.8% from a year earlier to CNY 3.44 trillion in the first half of 2025, widening from a 1.1% fall in January–May. The data highlights persistent deflation pressures and growing trade uncertainty amid broad U.S. tariffs. State-owned enterprises experienced steeper losses (-7.6% vs. -7.4% in January-May), while profit growth in the private sector slowed markedly (1.7% vs. 3.4%). Profits fell in coal mining (-53.0%), oil and gas extraction (-11.5%), chemicals (-9.0%), textiles (-8.1%), and non-metallic minerals (-5.4%). Meanwhile, gains were seen in agriculture (22.8%), ferrous metal smelting (13.7%), electrical machinery (13.0%), non-ferrous metals (7.8%), general manufacturing (6.5%), heat production (5.6%), special equipment (4.4%), autos (3.6%), computers and communications (3.5%), and other electronics (3.5%). In June alone, profits fell 4.3% yoy, easing from a 9.1% drop in May but marking the second straight monthly decline.