Catenaa, Monday, April 28, 2025-China industrial profits grew in the first quarter, ending a months-long decline, but rising US tariffs and global uncertainties threaten future gains.
Profits at China’s industrial firms rose 0.8% year-over-year to 1.5 trillion yuan ($205.86 billion) in the January-March period, reversing a 0.3% drop in the first two months, the National Bureau of Statistics said Sunday. March profits alone rose 2.6% from a year earlier.
The recovery follows a 3.3% full-year decline in 2024 and marks a tentative stabilization, fueled by government stimulus efforts that lifted consumer demand. Profits from wearable smart devices surged 78.8%, while kitchen appliance makers posted a 21.7% increase.
However, economists warn of growing risks. Washington’s 145% tariff hike on Chinese goods has rattled exporters, many of whom report weak domestic demand, intense price competition, and slow payments at home. No new trade talks have been scheduled.
State-owned firms’ profits slipped 1.4%, private companies saw a 0.3% fall, while foreign firms posted a 2.8% gain. The Politburo pledged Friday to aid businesses and workers hit hardest by tariffs and to deploy new monetary tools to bolster innovation, consumption, and trade.
Analysts note that while Beijing urges exporters to find local buyers, the internal market remains tepid. Officials warned that external conditions are growing “more complex and severe,” hinting at more policy support ahead.
