China’s industrial sector is showing signs of strong recovery, with profits of major industrial firms rising 1.4% year-on-year in the first four months of 2025, according to data from the National Bureau of Statistics (NBS).
In April alone, profits grew by 3.0% compared to the same month last year, marking the second consecutive month of improvement. This upward trend is being driven by policy stimulus and significant gains in advanced manufacturing sectors.
High-Tech and Equipment Manufacturing Lead the Way
The recovery is spearheaded by equipment manufacturing and high-tech industries. Profits in equipment manufacturing surged by 11.2% year-on-year during the January-April period, contributing 3.6 percentage points to the overall industrial profit growth. Remarkably, seven out of eight sub-sectors in this category posted double-digit growth.
Specialized equipment and general machinery sectors saw profits rise by 13.2% and 11.7%, respectively. Consumer goods industries, including home appliances, also experienced substantial increases, reflecting a boost in domestic consumption.
Policy Measures Fuel Growth
Yu Weining, a statistician with the NBS, attributed the growth to effective policy measures, such as large-scale equipment upgrades and consumer goods trade-in programs. These initiatives have encouraged modernization and stimulated consumer spending, supporting the industrial sector’s momentum.
However, Yu also cautioned that “external uncertainties and weak domestic demand persist,” emphasizing the importance of consolidating the recovery’s foundation. Ongoing efforts are needed to sustain growth amid global economic challenges.
China’s Industrial Resilience
The latest data underscores China’s industrial resilience, with emerging sectors offsetting traditional weaknesses. The continued growth in high-tech and equipment manufacturing indicates a shift towards more advanced industries, paving the way for sustainable economic development.
