Profits of industrial companies in China fall by 15.5 percent

It was reported that the profits of industrial companies in China decreased by 15.5 percent in January-July 2023 compared to the same period last year. According to the data of the National Bureau of Statistics (NBS), the total profits of industrial enterprises with an annual turnover of over 20 million yuan ($2.74 million) were 3.94 trillion yuan ($540 billion) in the January-July period. In this period, profitability decreased by 15.5 percent compared to the previous year. Profits increased in 13 out of 41 industrial branches. Industrial production in the country increased by 3.7 percent in July, below expectations. Despite the low base created by the closures and quarantine measures implemented in cities hosting key industries and business sectors, especially in Shanghai, the country's largest city, due to the Covid-19 outbreaks last spring, the decrease in profitability this year gives negative signs of the recovery of industrial production after the pandemic. Profits of industrial enterprises in China decreased by 4 percent in 2022 compared to the previous year.