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Profits of major Chinese industrial companies fell the most since October last month, according to official figures, in the latest signal of economic stress amid trade tension with the US.
The National Statistics Bureau reported on Friday that with companies with revenue of more than RMB20MN ($ 2.8MN) declined by 9.1 percent in May in May.
The reading showed 1.4 percent cumulative profit growth from January to April for a decline of 1.1 percent in May.
Will combine concerns about the projection of data Chinese economyWhich was struggling to gain momentum under the recession of a property and an deflation background before the trade war with the US in April.
US President Donald Trump said on Thursday that A Tariff Trus with China Earlier this month agreed in London. Under this deal, countries agreed to climb up to 145 percent from Levy, but stress is on Chinese rare earth export and American technology export controls.
The recession in industrial profits followed other recent signs of weakness in the world’s second largest economy, increasing pressure on Chinese policy makers.
The data released last week made a jump in retail sales but Weakening increase in industrial production In May.
Construction purchasing managers’ indices, a gauge of factory activity, has also entered contraction in the last two months, while exports to the US Last month fell The most since the introduction of the Covid-19 epidemic.
Following the first signs of improving China’s largest cities, the prices of the new house also faltered in May.
Deflation, a major challenge for China’s economy remained for the fourth straight month in May. The Consumer Price Index decreased by 0.1 percent, while producer prices fell the most since 2023.
U Wining, a statistician at NBS, stated that the decline in industrial profits was affected by several factors, “insufficient effective demand” and “industrial product prices fall”.
The lame consumer expenses have become a focal point of the government, emphasizing President Xi Jinping Domestic demand needs to be increased Last year end. Officials are targeting about 5 percent GDP growth for 2025 as per the previous year.
The government has also launched one Business program In an attempt to promote demand, for products such as home appliances, which was expanded this year. The NBS pointed to the impacts of the policy, stating that the profits in equipment and special equipment industries have increased by 10.6 percent and 7.1 percent respectively respectively.
But in a sign Under pressure In the highly competitive auto sector, car manufacturers had a profit of 11.9 percent in the first five months.
Data visualization by Haohsiang Ko in Hong Kong
