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Yahoo
15 hours ago
- Business
- Yahoo
China's industrial profits fall further in June
BEIJING (Reuters) -China's industrial profits continued to fall in June, data showed on Sunday, as entrenched producer deflation put more margin pressure on businesses in the face of subdued domestic demand and lingering global trade uncertainty. China's economy slowed less than expected in the second quarter in a show of resilience to U.S. tariffs. But punishing price wars among producers have prompted Beijing to pledge tougher regulations for autos and solar panels, among other industries engaged in cutthroat competition. Profits at China's industrial firms fell 4.3% in June from a year earlier, following a decline of 9.1% in May, while first-half profits were down 1.8% versus a slide of 1.1% in the period from January to May, National Bureau of Statistics data showed. As China faces a complex and changing external environment, it must deepen the formation of a "unified national market, expand and strengthen domestic circulation and promote high-quality development of the industrial economy", said Yu Weining, a statistician at the bureau. Lu Zhe, chief economist at Soochow Securities, said industrial profits may improve, as China's actions against self-destructively fierce competition and a government trade-in scheme - a version of a "cash for clunkers" programme - should help control the price war amongst companies and expand consumer demand. Factory-gate deflation deepened last month to its worst in almost two years, as softening domestic demand worsened overcapacity woes. State-owned automakers Guangzhou Automobile Group and JAC Group expect to post their biggest ever second-quarter losses next month. China's leaders pledged this month to ramp up efforts to regulate aggressive price-cutting, fuelling expectations that a fresh round of industrial capacity cuts might be approaching. But analysts say this round of supply-side reforms will not pull China out of deflation as quickly as a decade ago, citing challenges such as job losses. State-owned firms recorded a 7.6% decline in profits in the first half. Private-sector companies reported a rise of 1.7% while foreign firms logged a 2.5% gain, the data showed. Industrial profit numbers cover firms with annual revenue of at least 20 million yuan ($2.8 million) from their main operations. ($1=7.1561 Chinese yuan renminbi) Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
a day ago
- Business
- Yahoo
China's industrial profits fall further in June
BEIJING (Reuters) -China's industrial profits continued to fall in June, data showed on Sunday, as entrenched producer deflation put more margin pressure on businesses in the face of subdued domestic demand and lingering global trade uncertainty. China's economy slowed less than expected in the second quarter in a show of resilience to U.S. tariffs. But punishing price wars among producers have prompted Beijing to pledge tougher regulations for autos and solar panels, among other industries engaged in cutthroat competition. Profits at China's industrial firms fell 4.3% in June from a year earlier, following a decline of 9.1% in May, while first-half profits were down 1.8% versus a slide of 1.1% in the period from January to May, National Bureau of Statistics data showed. As China faces a complex and changing external environment, it must deepen the formation of a "unified national market, expand and strengthen domestic circulation and promote high-quality development of the industrial economy", said Yu Weining, a statistician at the bureau. Lu Zhe, chief economist at Soochow Securities, said industrial profits may improve, as China's actions against self-destructively fierce competition and a government trade-in scheme - a version of a "cash for clunkers" programme - should help control the price war amongst companies and expand consumer demand. Factory-gate deflation deepened last month to its worst in almost two years, as softening domestic demand worsened overcapacity woes. State-owned automakers Guangzhou Automobile Group and JAC Group expect to post their biggest ever second-quarter losses next month. China's leaders pledged this month to ramp up efforts to regulate aggressive price-cutting, fuelling expectations that a fresh round of industrial capacity cuts might be approaching. But analysts say this round of supply-side reforms will not pull China out of deflation as quickly as a decade ago, citing challenges such as job losses. State-owned firms recorded a 7.6% decline in profits in the first half. Private-sector companies reported a rise of 1.7% while foreign firms logged a 2.5% gain, the data showed. Industrial profit numbers cover firms with annual revenue of at least 20 million yuan ($2.8 million) from their main operations. ($1=7.1561 Chinese yuan renminbi) Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Time of India
18-05-2025
- Business
- Time of India
Chinese job markets shiver as US-China trade talks fall cold
A breakthrough in US-China trade talks in Geneva has brought some hope for China's battered manufacturing sector, but the damage may have already wrecked many factory workers, as the job market remains tight. Tensions in the trade war have relaxed, sparing Beijing from a potentially severe crisis, widespread job losses that could have threatened social stability, a cornerstone that has helped the Communist Party to retain power and legitimacy. Dampened by the US tariff hikes of 145%, the Chinese economy continues to struggle, even after the trade talks, hurting the job market and slowing down the economy, Reuters reported. Will tariff cut bring back the sentiment ? While the talks have helped avert the crisis, challenges remain. A senior policy adviser close to the matter described the outcome as 'a win for China,' adding, 'factories will be able to restart operations and there will be no mass layoffs, which will help maintain social stability.' However, with tariffs still standing at around 30%, on top of pre-existing duties, businesses remain cautious. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Gentle Japanese hair growth method for men and women's scalp Hair's Rich Learn More Undo 'It's difficult to do business at 30%,' the adviser said. 'Over time, it will be a burden on China's economic development.' Before the Geneva meeting, signs of distress were evident. Beijing had grown alarmed at rising bankruptcy risks in labour-intensive sectors such as toys and furniture, according to sources cited by Reuters last week. Lu Zhe, chief economist at Soochow Securities, estimated that the number of jobs at risk has fallen to below 1 million, down from a range of 1.5 to 6.9 million before the tariff cut. Even so, Alicia Garcia-Herrero, chief Asia Pacific economist at Natixis, warned the threat hasn't vanished, predicting the current tariff levels could still lead to 4 to 6 million job losses. 'When you increase the tariffs to such a high level, many companies decide to stop hiring and to start basically sending the workers back home,' she said. 'At 30%, I doubt they will say, okay, come back.' To cushion the impact, the Chinese government is stepping in with targeted investment and other measures. Last week, the People's Bank of China unveiled a scheme to direct cheap funding toward service industries and elderly care, sectors seen as having potential to absorb displaced workers. 'On employment, the most important driver will come from increased government investment given that the enthusiasm for corporate investment has yet to rise,' said Jia Kang, president of the China Academy of New Supply-Side Economics. Despite official efforts, the mood remains bleak on the ground. While Beijing may have avoided the worst-case scenario, for many, the scars of the tariff war are likely to linger far longer. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
