For young global citizens tracking big economic shifts, July brought encouraging news from the Chinese mainland’s factories. Profits at major industrial firms fell 1.5% year-on-year, a marked improvement and the second month of narrowing declines. Compared with June, the contraction eased by 2.8 percentage points, hinting at a steady recovery in the industrial sector.
Looking at the January to July period, total profits of large industrial enterprises dipped 1.7% from a year earlier, but the pace of decline eased by 0.1 percentage point versus the first half of the year. Meanwhile, revenues climbed 2.3% to 78.07 trillion yuan, while profits reached 4.02 trillion yuan, underscoring that production and sales are stabilizing.
A standout driver has been the high-tech manufacturing segment. After a 0.9% drop in June, profits rebounded sharply by 18.9% in July. Within this category, integrated circuit manufacturing led the charge with a sky-high 176.1% profit surge, fueled by ramped-up innovation and policy backing.
Yu Weining, a statistician at the National Bureau of Statistics, credits stable industrial output and targeted policies that encourage reasonable price adjustments for lifting corporate earnings. Adding to the momentum, government incentives on equipment renewal and consumer goods trade-ins fueled strong gains: profits in electronic and electrical machinery specialized equipment jumped 87.9%, while computer manufacturing profits leapt 124.2% in July.
As the world watches, these data points show how policy support and technological innovation can reignite an industry. For business and tech enthusiasts, the evolving dynamics on the Chinese mainland offer a real-time case study in economic resilience and the power of high-tech sectors to lead a broader recovery.
Reference(s):
China's industrial profits decline narrows for 2nd consecutive month
cgtn.com
