China’s Industrial Profits Plunge 13.1% in November Amid Persistent Factory Price Declines
According to the Economic Desk of Webangah News Agency, China’s industrial profits contracted by 13.1% year-on-year in November, marking a steeper decline compared to October’s 5.5% drop, according to data released by the National Bureau of Statistics (NBS). The accelerated slump occurred despite better-than-expected goods exports and against a backdrop of persistent factory-gate price deflation, maintaining pressure on policymakers to implement further measures to address severely weakened household consumption.
For the first 11 months of 2025, China’s industrial profits showed a marginal 0.1% increase year-on-year, down from the 1.9% growth recorded from January to October. The slowdown was partly attributed to a 47.3% profit plunge in the coal mining and washing sector.
Growth momentum in China’s nearly $19 trillion economy has weakened as the year ends, with authorities yet to introduce new supportive policies. Chinese observers noted that Beijing finds some reassurance in indicators suggesting its official 2025 growth target of around 5% remains achievable, while the U.S.-China trade truce has helped ease tensions. However, market forecasts emphasize the need for stronger policy support next year to boost domestic demand and broader economic growth.
Yu Weining, NBS’s chief statistician, stated in the report: “Amid global instability and uncertain conditions, and during ongoing structural adjustments as industries transition from old to new growth drivers, the improvement in industrial enterprises’ profitability still needs to be pursued with greater stability.”
The Rhodium Group think tank estimated China’s 2025 economic growth at just 2.5-3%, nearly half the pace suggested by official data, due to collapsing fixed-asset investment in the second half of 2025. In contrast, the automotive sector reported a 7.5% profit increase, up 3.1 percentage points from January-October, while high-tech manufacturing remained a bright spot with profits rising 10% year-on-year, showing a 2-percentage-point improvement.
The Chinese government has repeatedly pledged to strengthen employment, boost household consumption, revive prices, and stabilize the long-slumping property market. Industrial profit figures cover firms with annual revenues of at least 20 million yuan ($2.85 million) from their main operations.
