NINGBO, Zhejiang Province (CNBC) — China’s industrial profits saw a 0.6% increase in 2025, breaking a three-year decline streak. The growth was driven by policy intervention and companies expanding overseas amid weak domestic demand.

Recovery Driven by Policy Intervention
Industrial profits in China climbed 5.3% in December, the strongest performance since September. The recovery was attributed to Beijing’s campaign against aggressive price undercutting and companies’ efforts to expand globally.

Uneven Growth Across Sectors
There is a high level of divergence across industries in China, with mining sector profits plunging 26.2% while manufacturing and utilities saw increases. State-owned enterprises saw a decline, while foreign-funded businesses recorded an increase.

Challenges and Future Outlook
While some sectors like smart consumer electronics showed significant profit growth, certain industrial firms are still facing operational challenges. Economists are calling for further policy support to boost domestic demand and overall economic growth in China.

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