China’s industrial profits rose for a second straight month in September, giving officials a measure of optimism that the world’s second-largest economy may be stabilizing despite weak domestic demand and trade uncertainties. Data from the National Bureau of Statistics (NBS) showed a 21.6% increase in profits last month, following a 20.4% rise in August. For the first nine months of 2025, industrial profits were up 3.2%, compared with just 0.9% in the January-August period.
High-tech and equipment manufacturing sectors helped lift the overall figures, according to NBS statistician Yu Weining, although he noted that the gains were partly supported by a low base of comparison. Analysts remain cautious, with Nomura economists warning that the surges in August and September should be “taken with a grain of salt” and may not signal a genuine recovery in corporate earnings.
Weak domestic consumption continues to challenge many firms, particularly those producing discretionary goods. For example, Zhangzhou Pientzehuang Pharmaceutical Co., a major traditional medicine producer, reported a 28.8% drop in third-quarter net profit, marking its second consecutive quarterly decline.
China’s leadership continues to push efforts to expand domestic consumer demand as part of its new five-year plan. However, priorities remain on building a modern industrial system and achieving technological self-reliance amid intensifying competition with the United States.
State-owned firms reported a slight 0.3% decline in profits over the first nine months, while private companies saw profits rise 5.1% and foreign firms posted a 4.9% increase. The industrial profit figures include firms with annual revenues of at least 20 million yuan ($2.81 million) from their main operations.
