Profits of China’s industrial enterprises rose 21.1 percent year-on-year in May, maintaining the strong growth momentum recorded in previous months.
According to the National Bureau of Statistics (NBS), the combined profits of industrial companies with annual revenue exceeding 20 million yuan (approximately $2.94 million) increased by 21.1 percent compared with the same month last year.
The upward trend followed gains of 15.2 percent in the first two months of the year, 15.8 percent in March, and 27.4 percent in April.
For the first five months of the year, industrial profits climbed 18.8 percent compared with the same period last year.
The increase in profitability was driven by higher revenues for energy and raw material producers as energy and commodity prices rose amid the conflict in the Middle East. Growing demand for infrastructure and hardware related to artificial intelligence also contributed to stronger earnings.
China’s industrial profits increased by 0.6 percent in 2025, marking the first annual rise after three consecutive years of declines. Profits had fallen by 4 percent in 2022, 2.3 percent in 2023, and 3.3 percent in 2024.