China's industrial profits up 19.1% in August_china

Marco Green
September 28, 2020

Employees at a vehicle factory in Wuhan, Hubei province, China.

Based on the most recent data compiled on Sunday by the National Bureau of Statistics (NBS), an annual increase by 19.1 percent was observed on August in the revenues of China's key industrial firms as those amounted to 612.81 billion yuan (about 90 billion US dollars).

Profits of the mining sector were also apparently restored, while those of the raw materials manufacturing industry saw faster expansion due to improving demand as well as increasing prices of global commodities including crude oil and iron ore.

In August, profits of the equipment manufacturing sector reported relatively fast growth, up 23.1 percent year on year, while those of the auto manufacturing industry went up 55.8 percent.

All economic indicators in August, from exports to producer prices and industrial production, are showing improvement in the industrial sector. But factory activity grew at a slower pace; Small businesses face weak demand and financial difficulties.

For January-August, industrial companies' profits fell 4.4% from a year previously to 3.72 trillion yuan, much better than the 8.1% reduction in the very first 7 months.

Liabilities at industrial firms rose 6.6 per cent -year-on-year at the end of August, edging higher than the 6.5 per cent at the end of July.

Total profits in for the first eight months of the year reached 3.716 trillion yuan (US$544.5 billion), with state-owned enterprises seeing a year-on-year decrease of 17 per cent to 950.94 billion yuan, foreign-invested enterprises (including Hong Kong, Macau and Taiwan-funded ones) registering a decrease of 0.4 per cent to 1.038 trillion yuan, and private enterprises seeing a decrease of 3.3 per cent to 1.069 trillion yuan.

Profits in 16 of the 41 surveyed industrial sectors rose compared with the same period previous year, while 25 sectors saw their profits fall, according to the NBS.

Meanwhile, the United States has imposed restrictions on exports to China's biggest chip maker SMIC after concluding there is an "unacceptable risk" equipment supplied to it could be used for military purposes.

"SMIC reiterates that it manufactures semiconductors and provides services exclusively for civilian and commercial end-users and end-uses", SMIC said. He said these actions are more likely to draw a retaliatory response from Beijing.

Other reports by Click Lancashire

Discuss This Article

FOLLOW OUR NEWSPAPER