Fact Check: "China's industrial profits plummet 9.1% in May, the largest drop since October."
What We Know
In May 2025, China's industrial profits experienced a significant decline of 9.1% compared to the same month in the previous year, marking the largest drop since October 2024, when profits fell by 10% (source-1, source-2, source-3). This decline was attributed to weak domestic demand and lower prices for industrial products, which have been affecting profitability across various sectors (source-4).
The cumulative profits of major industrial firms in China also fell by 1.1% during the first five months of 2025, indicating a broader trend of declining profitability within the sector (source-5, source-6). Specific industries, such as mining, reported a staggering 29% drop in profits, while the automotive sector saw an 11.9% decline (source-7).
Analysis
The claim that "China's industrial profits plummet 9.1% in May, the largest drop since October" is supported by multiple credible sources. The National Bureau of Statistics of China provided the data indicating a 9.1% year-on-year decline in industrial profits for May 2025, confirming the accuracy of the claim (source-2, source-3).
The analysis of the situation indicates that the drop in profits is largely due to weak domestic demand and lower product prices, which have been exacerbated by ongoing economic challenges, including trade tensions and a price war in various sectors (source-4).
The reliability of the sources used in this fact-check is high, as they include reputable news organizations and official statistics. However, it is important to note that economic data can be subject to interpretation, and the context surrounding these figures—such as government policies and global economic conditions—can influence their implications.
Conclusion
Verdict: True
The claim that "China's industrial profits plummet 9.1% in May, the largest drop since October" is accurate based on multiple reliable sources that confirm the reported decline and its context. The data reflects significant economic challenges faced by China's industrial sector, underscoring the impact of domestic demand and pricing pressures.
Sources
- China's May industrial profits slip back into sharp decline
- Chinese firms' industrial profits decline 9.1% in May, largest fall in 7 months
- China's industrial profits plunge 9.1%, steepest fall in seven months
- China's Industrial Profits Sink on US Tariffs, Deflation Woes
- China's Industrial Profits Drop 9.1%
- China's industrial profits plunge 9.1% in May
- China's Industrial Profits Slip Back Into Sharp Decline in May
