Overview

• Industrial profits at major Chinese firms climbed 3% in April, marking a second straight monthly rise and lifting year-to-date profits 1.4% compared to the same period in 2024.
• Private-sector and foreign companies posted profit gains of 4.3% and 2.5% in the first four months of 2025, while state-owned enterprises saw profits drop 4.4%.
• Manufacturing activity contracted in April with the official PMI falling to 49.0, and exports to the U.S. tumbled more than 21% year-on-year even as shipments to Southeast Asian markets helped overall exports grow 8.1%.
• After a Geneva-brokered truce in May, U.S. tariffs on Chinese goods were cut to 51.1% and China’s levies on U.S. imports were set at 32.6%, easing trade tensions.
• Beijing unveiled a broad stimulus package in early May featuring interest rate cuts, major liquidity injections and export support measures to bolster economic growth.