China's industrial enterprises post modest profit growth in 2025

China's large-scale industrial enterprises recorded a modest but notable recovery in 2025, as profits returned to growth after three consecutive years of decline. According to data released by the National Bureau of Statistics (NBS) on Monday, total profits of industrial enterprises above designated size reached 7.4 trillion yuan ($1.06 trillion) in 2025, representing a year-on-year increase of 0.6 percent. In December alone, profits rose 5.3 percent from a year earlier, marking a sharp turnaround from the 13.1 percent decline seen in November.

The recovery was underpinned by stronger policy support and structural improvements across the industrial sector, said Yu Weining, a statistician at the NBS. Throughout 2025, China's authorities stepped up the implementation of more proactive and effective macroeconomic policies, while accelerating the push toward new industrialization. These efforts helped stabilize industrial activity and improve overall performance.

Manufacturing remained a key driver of profitability. Total manufacturing profits reached 5.69 trillion yuan in 2025, up 5 percent from the previous year. The utilities sector—including electricity, heat, gas, and water production and supply—also posted solid gains, with profits rising 9.4 percent to 872.1 billion yuan. 

Meanwhile, operating revenue of large-scale industrial enterprises climbed to 139.2 trillion yuan, an increase of 1.1 percent year on year.

Yu noted that new growth drivers played an increasingly important role. Equipment manufacturing stood out as the strongest contributor, with profits rising 7.7 percent in 2025. This segment alone boosted overall industrial profit growth by 2.8 percentage points, making it the largest single source of support. High-technology manufacturing also delivered robust performance, as profits surged 13.3 percent—12.7 percentage points higher than the overall industrial average, Yu added.

At the same time, traditional industries continued to upgrade and optimize their profit structures. Improvements in efficiency and technology helped these sectors cultivate new sources of productivity, with profit growth exceeding industry averages, Yu also said.

Overall, the return to profit growth in 2025 signals a gradual improvement in the quality and resilience of China's industrial economy, supported by policy coordination, innovation-driven sectors, and ongoing structural transformation.

(Cover via VCG)