China’s Industrial Profits Surge Despite Trump Tariffs
(MENAFN) China’s industrial firms posted a 1.4% year-over-year profit increase during the January to April period of 2025, weathering a turbulent trade environment fueled by reciprocal tariffs between the U.S. and China.
Leading the rebound were the high-tech and equipment manufacturing industries. According to a state-owned broadcaster, seven out of eight key manufacturing sub-sectors achieved double-digit profit growth. Equipment manufacturing alone surged 11%, contributing 3.6 percentage points to the overall industrial profit rise.
Profits in the general machinery sector rose by 11.7%, while specialized equipment manufacturers saw an even sharper uptick of 13.2%. Sectors producing home appliances and other consumer goods also enjoyed robust double-digit gains.
Yu Weining, a statistician at the National Bureau of Statistics, attributed the growth to state-led programs, citing “extensive equipment improvements and consumer goods trade-in schemes” as pivotal drivers.
Yu also cautioned that "external uncertainties and weak domestic demand persist," while stressing the importance of reinforcing the foundations of recovery. Nonetheless, he pointed out that the latest figures underscore the adaptability of China’s industrial sector, with newer industries helping offset older vulnerabilities.
April alone registered a 3% year-on-year profit rise—the second consecutive month of improvement—powered by policy-driven momentum and a boost from advanced manufacturing gains.
This profit increase unfolded amid heightened trade volatility. U.S. President Donald Trump reignited global trade concerns with a sweeping announcement of “reciprocal” tariffs on April 2.
Initially applying to over 180 countries, the tariffs were subsequently lifted for all but China.
However, following diplomatic talks in Geneva earlier this month, Trump suspended a 145% tariff on Chinese goods.
The U.S. and China then agreed to a temporary tariff reduction effective May 14. Under the agreement, the U.S. lowered its tariff on Chinese imports to 30%, while China reduced its tariff on American goods to 10%—a mutual cut of 115%.
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