Industrial profits in China are declining! How do trade tensions affect global competition?

According to data from the National Bureau of Statistics, profits of industrial enterprises in China fell by 13.1% in November 2025 compared to the same period last year. This situation has created uncertainty due to trade tensions with the US.

Mutual tariff increases between the US and China have negatively impacted the performance of industrial companies. However, a temporary agreement was reached during discussions between the leaders of both countries.

Restrictions on the export of rare earth elements from China have heightened trade tensions. This situation has also affected the profitability of industrial enterprises.

The uncertainty created by trade tensions is showing signs of contraction in the Chinese economy. The loss of momentum in production and consumption is also being felt in the investment sector.