Employees work at a factory that produces lithium battery for export in Huaibei, China, on June 11, 2024. AFP via Getty Images
Industrial profits at large Chinese companies fell in May compared to a year earlier, reversing the modest gain recorded in previous months, as weak domestic demand and the tariff war with the United States weighed on manufacturers.
Data released on June 27 by China’s National Bureau of Statistics shows that profits declined 9.1 percent year-over-year in May. The drop erased the 1.4 percent cumulative gain seen in the first four months of 2025, and pulled overall profits for the January–May period down to a 1.1 percent decline.
