China's major industrial firms reported a 0.9% year-on-year profit increase in the first eight months of 2025, according to data released by the National Bureau of Statistics (NBS) on Saturday. This marks a notable recovery from a 1.7% decline in the first seven months, ending a three-month contraction streak. August alone saw profits surge 20.4% month-on-month, rebounding sharply from July's 1.5% drop.
Policy Measures Drive Recovery
NBS statistician Yu Weining credited the turnaround to effective macroeconomic policies, accelerated development of a unified domestic market, and a lower year-earlier comparative base. Stable revenue growth provided a foundation for the rebound, with industrial firms' operating income rising 2.3% year-on-year during the eight-month period. August revenue growth accelerated to 1.9%, up 1 percentage point from July.
Manufacturing Sector Anchors Growth
The equipment manufacturing sector emerged as a key driver, posting a 7.2% profit increase that contributed 2.5 percentage points to overall industrial growth. This 'ballast' effect underscores the sector's critical role in stabilizing China's industrial landscape amid global economic uncertainties.
Challenges and Next Steps
While welcoming the positive trend, Chinese authorities cautioned that a complex external environment and subdued domestic demand require continued policy support. Priorities include expanding domestic consumption and regulating market competition to ensure sustainable growth.
