Despite the heavy tariffs imposed by former U.S. President Donald Trump, China’s industrial sector has demonstrated remarkable resilience.
In April 2025, industrial profits rose by 3%, marking the second consecutive month of growth.
This increase was largely driven by Beijing’s strategic policy measures, which cushioned the impact of the tariffs and supported private enterprises.
In the first four months of 2025 China’s industrial profits rose 1.4%, according to data released on 27th May 2025.
Trump’s administration had levied tariffs as high as 145% on Chinese imports, prompting Beijing to retaliate with its own trade restrictions.
However, rather than crippling China’s manufacturing sector, these tariffs led to a shift in trade dynamics. Chinese exporters successfully found alternative markets, particularly in Southeast Asia and Europe, mitigating the losses from reduced U.S. trade.
It isn’t unusual for businesses to weather and absorb such tariffs but more usually, the consumer bears the brunt and pays some, if not all, of the increased costs.
High-tech manufacturing and equipment production saw notable gains, with profits in these sectors rising by 9% in the first four months of the year.
Additionally, government subsidies for consumer electronics and appliances helped boost domestic demand, further stabilising industrial growth.
While state-owned enterprises reportedly faced challenges, private firms and foreign-invested businesses saw profits improve.
Analysts suggest that China’s ability to adapt to external shocks underscores the resilience of its industrial economy, even in the face of aggressive trade policies