BEIJING

Profits at industrial companies in China fell in October following rises in the previous two months.

According to a National Bureau of Statistics statement, the total profits of industrial enterprises with annual turnover exceeding 20 million yuan (approximately $2.82 million) dropped 5.5% in October 2025 compared to the same period last year.

Throughout the year, profits gained 1.4% year-on-year in the first four months of the year on average, but negative results from May to July pushed the average ratio down to minus 1.7%.

Then, thanks to jumps of 20.4% in August and 21.6% in September, the profitability ratio moved to the positive side, 3.2%.

With October figures, the profitability ratio dropped to 1.9% on average.

The uncertainty created by escalating trade tensions between the US and China, fueled by mutual tariff hikes, has hurt companies’ performance in recent months.

Profitability has regained momentum with the emergence of a consensus trend in tariff negotiations between the two countries.