China Industrial Profits Jump 14.4% in September as AI Supply Chain More Than Doubles Electronics Earnings
Updated
Updated · Reuters · Oct 27
China Industrial Profits Jump 14.4% in September as AI Supply Chain More Than Doubles Electronics Earnings
3 articles · Updated · Reuters · Oct 27
Summary
China’s industrial firms posted a 14.4% year-on-year profit increase in September, accelerating from 4.2% in August, while January-September profit growth held at 15.5%.
AI-linked demand drove the pickup, with profits in computer, communication and other electronic equipment manufacturing more than doubling over the first nine months, according to the statistics bureau and CITIC Bank International.
The rebound still masked a widening split across the economy: furniture manufacturing profits fell by more than half, and company-level strain showed in CATL’s sharply slower quarterly net profit growth as EV battery competition squeezed margins.
Export-oriented manufacturers also face rising uncertainty as China’s expanding trade surpluses fuel tensions with trading partners, especially Europe, even after third-quarter GDP growth of 4.5% kept the annual target within reach.
Beijing said it will keep using macro policy to support growth, boost domestic demand and optimize supply as it tries to replace weakening traditional drivers with newer industries.