China's industrial profits bounce back after earlier losses
China's big factories are making a comeback—industrial profits grew by 0.9% from January to August 2025, bouncing back after earlier losses.
The real surprise came in August, when profits shot up by over 20% compared to August last year (August 2024), according to official stats.
Some sectors still in the red
Beijing's crackdown on price wars helped companies hold onto more profit, but some sectors are still struggling.
Car and solar panel makers are locked in tough competition—BYD even saw its first profit drop in three-and-a-half years.
State-owned companies lost ground (down 1.7%), while private and foreign firms managed small gains.
Overall factory output and shopping growth hit lowest point
Even with this profit boost, China's economy is slowing overall—factory output and shopping growth hit their lowest point since last year thanks to a weak job market and housing slump.
Policymakers aren't rolling out big rescue plans yet, but interest rate cuts in the US might give China more wiggle room for gentle economic tweaks without risking currency trouble or money rushing out of the country.