China’s industrial sector is bouncing back! Major enterprises reported a combined profit increase of 0.8% in the first quarter of 2025, according to the National Bureau of Statistics (NBS). This uptick reverses a 3.3% decline from last year and ends a downturn that had been ongoing since the third quarter of 2024.
The NBS revealed that industrial firms with annual main business revenues of at least 20 million yuan (about $2.78 million) achieved combined profits of 1.51 trillion yuan during this period. This growth shows that China’s industry is adapting and recovering, which is good news not just for China but for economies around the world.
Nearly 60% of China’s major industrial sectors saw profits rise in the first quarter. Out of 41 major industrial categories, 24 registered year-on-year profit growth. The manufacturing sector was a standout, with profits climbing 7.6% compared to the same time last year, improving by 2.8 percentage points from the first two months.
The combined business revenue of these major industrial enterprises grew by 3.4% year-on-year, 0.6 percentage points higher than earlier in the year. This consistent growth suggests that the industrial sector is gaining momentum.
This rebound is significant because China’s industrial performance affects global markets. For many countries in the Global South, China’s demand for raw materials and its supply of manufactured goods have a direct impact on local economies. The positive trend could mean better trade opportunities and more stable economic relationships worldwide.
