China posts first annual rise in industrial profit in four years in 2025
Less reliance on exports to the US cushioned the Chinese economy from the impact of Trump’s tariffs
[BEIJING] China logged its first annual rise in industrial profit in four years in 2025, official data showed on Tuesday, as a government call to end price wars and other excessive competitive practices eased strain on businesses.
Weak growth in the US$19 trillion economy prompted rebukes for sectors such as autos and solar panels that brought an end to a race to the bottom. That has yet to halt a years-long decline in producer prices but an export boom has helped offset weak consumption at home.
Profit at industrial firms increased 5.3 per cent in December from the same month a year earlier, reversing a 13.1 per cent on-year fall in November, showed data from the National Bureau of Statistics.
For the whole of 2025, profit was up 0.6 per cent, versus a 0.1 per cent increase in the first 11 months. That marked the first annual gain in four years.
The auto industry ended last year with a 0.6 per cent rise in profit, reversing an 8 per cent fall in 2024, helped by strong exports.
Export diversification away from the US cushioned the economy from the impact of US President Donald Trump’s tariffs on Chinese imports.
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State-owned firms saw profit down 3.9 per cent last year, while privately run firms’ profit stayed flat and foreign firms recorded a 4.2 per cent gain, the data showed.
Industrial profit figures cover firms with annual revenue of at least 20 million yuan (S$3.7 million) from their main operations. REUTERS
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