China’s industrial profits rose 4.2% year on year in August, down from 11.2% in July, as weak domestic demand offset technology-sector gains. The January–August increase eased to 15.7% from 17.6% through July, National Bureau of Statistics data showed.
Computer, communications and other electronics makers led gains, with profits up 110% in the first eight months; wine, beverages and refined tea manufacturing saw profits fall 34.7%. The figures cover industrial firms with annual revenue from main operations of at least 20 million yuan.
Soft consumption and excess capacity in some sectors are weakening firms’ pricing power. Factories are increasingly seeking better profits overseas, a shift that risks deepening China’s export reliance amid geopolitical tensions and scrutiny of its trade surplus. Earlier this month, a central bank adviser warned AI may worsen and prolong the gap between strong supply and subdued demand, reinforcing calls to boost consumer spending and strengthen balance sheets across the economy.
