Chinese Industrial Profits Decline in Early 2025 Amid Rising Trade Tensions

Industrial profits in China shrank during the first two months of 2025,
reflecting mounting pressure on the world’s second-largest economy as trade tensions
with the United States escalate.

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China
Trump

China

Data released on Thursday by the National Bureau of Statistics showed that industrial sector profits dropped
by 0.3% year-over-year in January and February—a surprising decline that defied Bloomberg Economics’ forecast of a 9% increase.

This setback follows a temporary rebound in December, raising questions about the sustainability of the industrial sector’s recovery.
Analysts believe that weak profits undermine business confidence and reduce companies’ willingness to invest and hire,
deepening the challenges Beijing faces in its efforts to stimulate domestic demand.

The situation is further complicated by the ongoing trade war led by US President Donald Trump
with renewed threats of higher tariffs putting additional pressure on Chinese exports,
which accounted for about one-third of the country’s economic growth last year.

Meanwhile, deflationary pressures within factories continue to squeeze corporate profit margins,
highlighting the fragility of the economic recovery at the start of the new year.

Trump

Trump: We Will Seek a Deal on TikTok; Ban Could Be Delayed if a Settlement Is Reached

U.S. President Donald Trump announced on Wednesday that the country would pursue a deal regarding the popular app TikTok,
stating that the proposed ban could be delayed if a satisfactory agreement is reached—particularly with Chinese involvement.

Trump emphasized that China must play a role in
resolving the issue and noted he is considering reducing some tariffs on Beijing
if it successfully negotiates a TikTok settlement.

He added, “I have full authority to secure a broad deal if I choose to. There are several ways to acquire TikTok,
and we will choose the best method that is in the country’s best interest.”

It’s worth noting that earlier this year, Trump signed an executive order
delaying the enforcement of the TikTok ban in the U.S. originally set for January 19,
unless the app is sold to an American entity or an ally of Washington.

Chinese Industrial Profits Decline in Early 2025 Amid Rising Trade Tensions

Chinese Industrial Profits Decline in Early 2025 Amid Rising Trade Tensions

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