The decline in May – to industrial profits of a total of 2,720 billion yuan (approximately 3,600 billion kronor) means that industrial profits in China so far this year have fallen 1.1 percent compared to the period January-May last year.
For Chinese car manufacturers – who are involved in a fierce price war – the headwind is noticeable, with a total profit decline so far this year of 11.9 percent. It is the largest decline since the first quarter of 2023.
Behind the downward pressure on industrial profits in China lies generally insufficient streamlining, price drops for industrial products and a turbulent market, according to Yu Weining, analyst at NBS.
The profit decline for Chinese industry comes despite a production increase in May for China's industry of 5.8 percent.
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