China's industrial profit growth slows to 15.1% in June

Profit growth at China's major industrial firms slowed for a second consecutive month in June, official data showed Monday, underscoring the country's reliance on exports and overseas technology trends to offset persistent weakness in domestic demand.

Industrial profits grew 15.1% year-on-year last month, according to the National Bureau of Statistics, marking the slowest pace this year and a deceleration from the 21.1% increase recorded in May. For the first half of 2026, profits rose by 18.7%, a slight easing from the 18.8% growth seen in the January-to-May period.

The figures point to a two-speed recovery. Robust overseas demand, driven by a global artificial intelligence boom and a rebound in global energy prices, has powered a sharp turnaround for manufacturers of electronics, raw materials, and advanced equipment. Sectors tied closely to the domestic economy, however, continue to struggle under weak consumer confidence and a prolonged property sector slump.

This disparity was evident within the automotive industry. While China's car exports surpassed one million units for the first time ever in June, profits in the automobile manufacturing sector fell approximately 20% in...