Industrial profits in China decreased by 9.1 % in May

Industrial profits in China decreased by 9.1 % in May from the previous year, in the last sign that motivation efforts in Beijing are limited to increasing the profitability of institutions.

This represents the largest monthly decline since October last year, when industrial profits decreased by 10 %.

GPA in major industrial companies decreased by 1.1 % in the first five months of 2025, compared to the previous year, Data showed.

Citibank earlier this week promoted Chinese growth forecast from 2025 to 5 % from 4.7 %, in line with Beijing’s official goal, supported by strong growth in the first half of the year and flexible exports expectations.

China’s exports this year have survived, despite the policy of irregular American tariffs, thanks to the increase in shipments to Southeast Asia and the European Union countries. In May, the country’s exports increased by 4.8 % from the previous year, even when the shipment to the United States decreased by 34.5 % from last year.

CITI expects the country’s total exports to grow by 2.3 % decent, while they decrease the 10 % decrease in shipments to the United States

US President Donald Trump said on Wednesday that a deal was signed with China, without providing additional details. A White House official later explained that “the administration and China agreed to an additional understanding of a working framework for the implementation of the Geneva Convention.”

The Geneva deal on China’s restrictions stumbled on critical metal exports and the United States ‘restrictions, which stress students’ technical visas and Chinese student visas.

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