Beijing: China’s industrial profits rose 0.6% in 2025 from a year earlier, ending three consecutive years of declines, official data showed on Monday.
The improvement came as Beijing moved to curb aggressive price competition and companies increased efforts to expand overseas amid weak domestic demand.
Data from National Bureau of Statistics showed that profit growth accelerated toward the end of the year. Profits rose 5.3% in December, marking the strongest monthly increase since September.
December also saw factory activity return to growth after eight months of contraction, helped by stockpiling ahead of the Lunar New Year.
Price wars ease, but recovery uneven
Industrial profits had been under pressure in recent years due to intense price wars across multiple sectors, excess capacity, and sluggish consumer demand.
While overall profits improved, the recovery remained uneven across industries.
For the full year, profits in the mining sector fell 26.2%, while manufacturing profits rose 5% and utilities profits increased 9.4%, according to official data.
Profits surged in sectors such as ferrous metal processing and electronics manufacturing, while coal mining and oil and gas extraction recorded sharp declines.
State-owned enterprises saw profits fall 3.9%, while foreign-funded firms posted a 4.2% increase.
Domestic demand still weak
Officials said growth was supported by emerging industries such as high-tech manufacturing, equipment production, and smart electronics.
However, authorities acknowledged that many industrial firms continue to face challenges due to external pressures and weak domestic demand.
Retail sales rose 3.7% in 2025, lagging behind overall economic growth and industrial output, prompting calls for further policy support.
The Commerce Ministry said Beijing will step up efforts to boost household spending on cars, home appliances, electronics, and services to support broader economic recovery.
