China’s industrial profits surged in September, marking the fastest growth in nearly two years. The National Bureau of Statistics reported a 21.6 percent year-on-year increase. This follows a 20.4 percent rise in August. Analysts said the rebound reflects strong performance in key manufacturing sectors.
From January to September, major industrial firms recorded total profits of 5.37 trillion yuan, up 3.2 percent compared to last year. High-tech and equipment manufacturing drove most of this growth. Experts attribute the gains to effective government policies and a low comparison base from 2024.
Yu Weining, a statistician at the NBS, noted that headwinds remain due to global uncertainties. He urged policymakers to expand domestic demand, strengthen circulation, and stimulate market confidence to support sustainable profit growth.
High-tech manufacturing profits rose 26.8 percent in the first nine months. Manufacturing overall increased by 9.9 percent, while utilities like electricity, heat, gas, and water grew 10.3 percent. In contrast, mining sector profits fell by 29.3 percent.
A breakdown by ownership shows mixed results. State-owned firms saw a slight decline of 0.3 percent. Foreign companies grew 4.9 percent, while private-sector firms posted 5.1 percent growth. Analysts said this highlights the importance of diversified growth strategies across sectors.
Yu emphasized that the focus should remain on supporting high-value industries and fostering technological innovation. He added that improving domestic supply chains will also help maintain growth momentum.
The government has implemented policies to encourage new industrial investment and high-tech production. These efforts aim to ensure long-term stability in industrial profits while addressing challenges in traditional sectors.
Overall, China’s industrial profits show resilience amid external pressures. The strong performance in manufacturing signals that the country’s industrial strategy continues to support economic growth.
