2023-05-27 07:37:20
Profits of industrial companies in China fell 18% in April
Official data showed today, Saturday, that the profits of companies in the industrial sector in China declined in the first four months of 2023, as companies continued to suffer from margin pressures, as well as from weak demand amid a faltering economic recovery.
Data from the National Bureau of Statistics, according to Archyde.com, indicated that profits fell 20.6% from January to April, compared to the same period last year, and fell 21.4% in the first three months.
In April alone, industrial sector corporate profits fell 18.2% year-on-year, according to the National Bureau of Statistics, which sometimes only provides monthly data. Profits fell 19.2% in March.
Chinese companies are suffering amid weak demand at home and in key markets for the country’s exports.
Lenovo, the world’s largest PC maker, said this week that quarterly revenue and profit fell in the January-March period, and the company cut its workforce by 8 to 9% to cut costs, as global demand continues to slump. on personal computers.
Foreign companies recorded a 16.2% decline in their profits from January to April compared to the same period last year, while the profits of private sector companies fell 22.5%, according to the data.
The industrial profit data covers companies with annual income of at least 20 million yuan ($2.89 million) from their core operations.
Economic challenges
In the context, Chinese Minister of Commerce Wang Wentao said that the economic and trade development in the Asia-Pacific region is still facing many disruptions and challenges.
Speaking at the Asia-Pacific Economic Cooperation (APEC) conference in Detroit, Wang said he is aware of the difficulties the region is facing, but added that China, as a major developing country, is ready to make due contributions.
According to a statement issued by China’s Ministry of Commerce, Wang said, “The Asia-Pacific region has always been the most dynamic region for growth, development potential and economic resilience in the global economy, but economic and trade development still faces many disruptions and challenges.”
“China calls on APEC economies to continue to unswervingly promote the process of regional economic integration, further deepen trade and investment cooperation, and share opportunities and gains from the integrated development of regional industrial chains and supply chains,” Wang said.
World leaders are looking for ways to strengthen global supply chains, which remain unstable after the pandemic.
Chinese American communication
Washington and Beijing pledged to keep the lines of communication open between them despite their trade differences, during Wang Wentao’s meeting with US Trade Representative Catherine Tai on the sidelines of the conference.
A statement from Tai’s office said she “discussed the importance of trade relations between the United States and China in the global economy and the need for continued communication between the two sides.”
For its part, the official Chinese news agency Xinhua reported that the meeting in Detroit was “frank, practical and in-depth”.
It added that the Chinese commerce minister had raised concerns about US trade policies as well as about self-ruled Taiwan over which Beijing claims sovereignty.
Wang’s visit to Washington is the first by a high-ranking Chinese official since Biden took office, despite a visit by China’s environment minister last year.
($1 = 6.912 CNY)
(Archyde.com, The New Arab)
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