China's industrial profits fall again but decline not as sharp

October profits in most industries improve, but headwinds loom from US tariff threat

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BEIJING - China's industrial profits fell again in October, but less sharply than the previous month as deflation pressures dragged while demand remained soft in the crisis-hit US$19 trillion (S$25.6 trillion) economy.

Fresh headwinds from additional US tariffs could also threaten China's industrial sector in 2025, reducing export earnings.

The sprawling sector, which includes mining, processing and manufacturing companies, has struggled to stay profitable in the face of feeble domestic demand hit by a years-long property crisis, unemployment and rising trade tensions.

Policymakers have vowed to meet the government's gross domestic product growth target of around 5 per cent in 2024 even as US President-elect Donald Trump pledges to slap more tariffs on China-made goods.

Industrial profits in October fell 10 per cent year on year, better than a 27.1 per cent slump in September, though earnings slid 4.3 per cent in the first 10 months versus a 3.5 per cent decline in January-September, National Bureau of Statistics (NBS) data showed on Nov 27.