Chinese factory profits grow slowly in 2026

Official data shows that the profits of Chinese industrial companies recorded their slowest growth rate since the beginning of the year, increasing by 4.2% in August compared to the same month last year. This is the lowest rate since November 2025. This slowdown reflects growing pressures on the manufacturing sector due to weak consumer demand and rising energy costs. However, there was previously a strong recovery driven by the rise of sectors like artificial intelligence, such as the chip and electronics industries, which saw a 110% increase in profits during the first eight months. Currently, the Chinese economy faces multiple challenges, including a real estate sector crisis and a decline in industrial activity. It is expected that the government will take additional stimulus measures to support corporate profits and stabilize economic growth in the medium term.

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