China industrial profits surge 15% to start year, but oil price shock threatens outlook
By Anniek Bao
Published on March 27, 2026.
Chinese industrial firms saw a significant increase in profits in the first two months of the year, with a 15.2% increase from the previous year. This follows efforts to contain the fallout from the disruption of oil shipments from the Middle East, triggered by the U.S.-Israeli attacks on Iran. For the entire year of 2025, China's industrial profits rose 0.6% from a year ago, breaking three consecutive years of declines. However, rising energy prices are expected to impact the world's second-largest economy less than most other countries due to its large oil reserves and alternative energy sources.
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