Beijing, August 29—China’s major industrial firms reported a significant profit increase of 3.6 percent year-on-year in the first seven months of the year, according to data released by the National Bureau of Statistics (NBS) on Tuesday.
This growth marks a slight acceleration from the first half of the year, with the rate edging up by 0.1 percentage points. The consistent uptick reflects the resilience of China’s industrial sector amidst global economic uncertainties.
Industrial enterprises with an annual main business revenue of at least 20 million yuan (approximately $2.81 million) collectively achieved profits totaling 4.1 trillion yuan during the January-July period. Notably, in July alone, profits grew by 4.1 percent, an increase of 0.5 percentage points from June, signifying two consecutive months of accelerated growth.
The steady profit growth suggests that China’s industrial firms are navigating challenges effectively, leveraging domestic demand and optimizing operations. The manufacturing sector, in particular, has shown robustness, contributing substantially to the overall profit increase.
Analysts attribute this positive trend to government policies aimed at stabilizing the economy, including tax cuts and financial support for businesses. These measures have bolstered confidence among industrial enterprises, encouraging investment and innovation.
As China continues to implement strategies to foster economic growth and mitigate external pressures, the industrial sector’s performance remains a key indicator of the country’s economic health. The upward trajectory of profits underscores the sector’s pivotal role in sustaining momentum.
Global investors and market observers are closely monitoring these developments, as China’s industrial output has significant implications for global supply chains and economic dynamics.
Reference(s):
cgtn.com
