Mucahithan Avcioglu
27 May 2025•Update: 27 May 2025
ISTANBUL
The profits of industrial companies in China saw a growth of 1.4% year-on-year in January-April period of 2025, despite uncertainty caused by mutual tariffs by the US and China.
The high-tech and equipment manufacturing sectors spearheaded the rebound. Seven of the eight sub-sectors reported double-digit increases, and equipment manufacturing profits jumped 11% in the first four months of the year, adding 3.6 percentage points to the gain in industrial profits overall, according to the state-run CGTN television network.
The general machinery and specialized equipment sectors saw increases in profits of 11.7% and 13.2%, respectively. Home appliances and other consumer goods sectors experienced double-digit growth as well.
Yu Weining, a statistician with the National Bureau of Statistics, credited the expansion to governmental initiatives such as extensive equipment improvements and consumer goods trade-in schemes.
While warning that "external uncertainties and weak domestic demand persist" and emphasizing the necessity of consolidating recovery roots, Yu emphasized that the data highlights China's industrial resilience with growing industries compensating old deficiencies.
In April alone, the industrial profits grew 3% on an annual basis, marking the second consecutive month of improvement, driven by policy stimulus and gains in advanced manufacturing sectors.
The rise in profits came amid uncertainty in global trade sparked by US President Donald Trump's "reciprocal" tariffs first announced on April 2.
Trump had imposed reciprocal tariffs on over 180 nations, later suspending them for every country except China.
He also suspended the 145% tariff against China following negotiations in Geneva earlier this month.
The world's top two economies agreed to temporarily lower the tariffs mutually by 115% as of May 14, bringing US tariff rate against China down to 30% and China's rate against the US to 10%.
