Developments in China's Economy and Global Competition

Global Haber Gündemi @global_haber_gundemi
Profit increase in Chinese industrial companies

In August 2025, profits of industrial companies in China increased by 20.4%. This increase applies to industrial enterprises with an annual turnover of over 20 million yuan.

Following declines in May, June, and July, this rise turned the profitability for the first eight months positive, increasing by 0.9%. However, tariff negotiations between the US and China continue to create uncertainty.

The trade tensions that began with US President Donald Trump's announcement of additional tariffs have led to increased tariffs between the two countries, negatively impacting the performance of industrial companies.

China's industrial production rose by 5.2% in August. However, this increase recorded a lower momentum compared to previous months.

The increase in consumption and investments also slowed down. Despite various incentive policies implemented by the Chinese government to stimulate domestic demand, their effects remain limited.

As a result, the Chinese economy is struggling to cope with global competition and domestic demand issues. It is important to follow the developments closely.

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Global Haber Gündemi @global_haber_gundemi

China recorded a current account surplus of 165.6 billion dollars in Q1 2025. This reflects strong performance in foreign trade.

The State Administration of Foreign Exchange (SAFE) announced the current account for the January-March 2025 period. The total balance of trade, services, investment, and current transfers showed a surplus of 165.6 billion dollars in the first three months.

In foreign trade, a surplus of 237.6 billion dollars was recorded, while there was a deficit of 59.3 billion dollars in service transac...