From Yahoo Finance: 2025-05-26 21:39:00

China’s industrial profits rose 1.4% year-on-year in the January-April period, indicating a positive trend. In April alone, profits increased by 3.0%, showing continued growth. Despite concerns over trade tensions with the U.S., China’s industrial policy priorities seem to be working well, with commodities in new energy and high-end manufacturing sectors performing strongly.

State-owned enterprises saw a 4.4% profit decline, while private sector and foreign firms experienced growth of 4.3% and 2.5%, respectively. Analysts warn of challenges ahead, including global uncertainties and insufficient demand. Moody’s maintained a negative outlook on China but acknowledged government measures to address credit concerns.

As the U.S. and China reached a truce on tariffs, concerns remain about the potential impact on the Chinese economy. Some 16 million jobs in China could be at risk if exports to the U.S. decline significantly. Despite challenges, manufacturing enterprises saw 8.6% profit growth, while sectors like autos faced tough competition.

Read more: Stimulus helps drive China’s industrial profits as trade risks loom large