China’s Industrial Profits Grow Slightly in Q1 Despite Lockdown Measures

China’s National Bureau of Statistics (NBS) reported today that Chinese industrial profits rose only 8.5% in 1Q22, slowing from 4Q21, due to the impact of China’s lockdown of major industrial cities to prevent the spread of the coronavirus. This has a strong impact on the logistics and transportation system.

Industrial profits rose 10.6% year-on-year in March. This is a strong increase of only 5% in the first two months of this year.

According to NBS, foreign inflationary pressures and the spread of COVID-19 have put pressure on the industry in many ways and have also increased difficulties in manufacturing and operating private companies.

The manufacturing sector reported a 2.1% drop in profits in the first quarter, while the automotive industry recorded a decline of 11.9%.

However, international geopolitical conflicts have led to a sharp rise in raw material prices. This contributed to China’s coal mining industry increasing by 189% in 1Q22.

The profits of Chinese industrial enterprises are based on large enterprises with annual sales of at least 20 million yuan ($3.05 million).

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