Despite facing challenges such as insufficient market demand and extreme weather conditions—including high temperatures and severe flooding—China’s industrial firms have continued to post profit growth in the first eight months of the year. High-tech manufacturing is leading this surge, according to official data released on Friday.
The National Bureau of Statistics (NBS) reported that profits of major industrial companies rose by 0.5 percent year-on-year to 4.65 trillion yuan (approximately $652.95 billion) in the January-August period.
Gross profits, calculated after deducting business costs from operating revenue, grew by 1.2 percent compared to the same period last year.
Among the 41 major industrial sectors tracked by the NBS, 29 reported year-on-year profit growth, representing over 70 percent of the industries. This widespread growth highlights the resilience of China’s industrial economy amid various challenges.
High-tech manufacturing has emerged as a significant growth driver, with profits in this sector surging 10.9 percent compared to the same period last year. This increase far outpaced the average for larger industrial enterprises by 10.4 percentage points and contributed 1.8 percentage points to the overall industrial profit growth.
“The sustained rapid growth in high-tech manufacturing underscores its robust role in supporting the ongoing high-quality development of China’s industrial economy, despite the high baseline set in August and the broader challenges faced by the economy,” said Yu Weining, a statistician from the Department of Industry at the NBS.
The data underscores the vital role of high-tech manufacturing in driving China’s industrial profits, showcasing the sector’s capacity to bolster economic growth even in the face of significant obstacles.
Reference(s):
China's industrial profits rise with high-tech leading growth
cgtn.com
