In November 2025, the financial performance of China’s industrial enterprises experienced a record decline over the past 12 months, indicating worsening issues in the world’s second-largest economy. Experts cite insufficient domestic demand as the primary reason for the decrease.
This is reported by Finway
Slowdown in Economic Growth and Its Impact on Profitability
Data shows that during the first eleven months of the year, the total profit of the industrial sector increased by only 0.1% compared to the same period last year. This is significantly lower than the 1.9% growth recorded from January to October. The coal industry and coal washing sector experienced a notable decline, with profits falling by 47.3%.
“In the first 11 months of the year, industrial profits increased by 0.1% compared to the previous year, slowing down from 1.9% growth in January-October, partly due to a 47.3% drop in profits in the coal industry and coal washing.”
Lack of New Stimuli and Outlook for 2026
Analytical materials indicate that China’s economy, estimated at approximately $19 trillion, is showing signs of slowing down as the year comes to a close. Despite this, the government has yet to implement additional stimulus measures to support production.
Xu Tianchen, a leading economist at the Economist Intelligence Unit, emphasizes that profitability indicators reflect a general weakening of business activity in the fourth quarter. He believes that the primary cause of this is predominantly weak domestic demand. He also forecasts that in 2026, the profitability of industrial enterprises may improve, as companies have opportunities for revenue growth in international markets, even if this occurs at the expense of global competitors.