Profits of Chinese industrial companies fell in October 2025 after rising in the previous two months.
According to data released by the National Statistics Office of the People’s Republic of China, the total profits of industrial enterprises with annual revenues of more than 20 million yuan (about $2.82 million) decreased by 5.5% in October 2025 compared with the same period last year.
In the first four months of the year, industrial profits companies grew by 1.4% year on year, but subsequent declines in May, June and July meant that they contracted by 1.7% over the seven months. Profits surged 20.4% in August, returning to positive territory, and rose 21.6% in September.
For the ten months, profits remained positive, up 1.9%, although lagging behind the 3.2% growth recorded in the first nine months. Company performance has been negatively impacted in recent months by uncertainty caused by the escalation of the trade standoff between the United States and China due to mutual tariff increases.
Following signs of compromise in tariff negotiations between the two countries, profitability began to recover.
It is noted that in October, industrial profitability was affected by escalating tensions between the United States and China after Beijing announced new restrictions on the export of rare earth elements, a significant part of which China supplies to the world market.
After a meeting between the leaders of the United States and China on October 30 in Busan, South Korea, Chinese authorities decided to postpone for one year the introduction of measures to control the export of rare earth elements.
Washington, in turn, also postponed for a year the application of the rule according to which foreign companies in which more than 50% belongs to sanctioned entities would be subject to sanctions.