Recent developments in the Chinese economy are noteworthy. Trade tensions are negatively affecting industrial profits.

According to data from the National Bureau of Statistics, the profits of industrial enterprises decreased by 13.1% in November 2025 compared to the same period last year. This situation is evaluated as a consequence of trade tensions between the US and China.

While tendencies for compromise emerged in trade negotiations, China's restrictions on the export of rare earth elements increased tensions, negatively impacting the profitability of industrial enterprises.

Chinese industrial companies recorded profit increases in the first four months of the year, but subsequent declines left them behind this growth. The decrease in investments is increasing uncertainty in the economy.

As a result, the Chinese economy is going through a challenging period due to the effects of global competition. Trade tensions are leading to significant changes in the industry and investment sectors.