China’s industrial profits rose by 3% in April, marking the second consecutive monthly increase, despite steep U.S. tariffs and ongoing deflationary pressures. The improvement, up from March’s 2.6% growth, signals resilience in key sectors such as high-tech and equipment manufacturing.
From January to April, cumulative industrial profits grew 1.4% year-on-year, according to China’s National Bureau of Statistics. High-tech manufacturing led the gains, with profits up 9%, while household appliance makers saw an over 15% increase, partly due to government consumer subsidies.
The mining sector, however, reported a 26.8% decline in profits during the same period. Automotive and apparel industries also struggled, posting profit drops of 5.1% and 12.7% respectively.
The data comes amid easing trade tensions. After slapping 145% tariffs on Chinese imports in April, the U.S. reduced them to 51.1% following a Geneva-based trade truce. China’s retaliatory tariffs now stand at 32.6%.
State-owned firms recorded a 4.4% profit decline, while private and foreign-funded enterprises saw modest growth of 4.3% and 2.5%.
Despite gains, officials caution that weak domestic demand and pricing pressure continue to challenge sustainable growth.
