China's Industry Accelerates Its Recovery in 2025

Good news for those eyeing the Asian giant: China's industrial sector not only continued its recovery in the first four months of 2025 but did so with remarkable momentum. According to fresh data from the National Bureau of Statistics (NBS), the country's leading companies saw their profits grow by 1.4% year-on-year. This progress is the result of a mix of fiscal stimuli and the strong performance of key industries, all while navigating still-cautious domestic consumption and an international landscape with its own uncertainties.

April, in particular, painted an encouraging picture. Industrial profits jumped by 3% year-on-year, surpassing March's growth of 2.6 percentage points. This is the second consecutive month we've seen this strengthening, suggesting that China's productive machinery, especially in higher value-added segments, is gaining traction.

The Engine of Reactivation: Equipment Manufacturing Takes Off

Who's leading this charge? Undoubtedly, the equipment manufacturing sector. Between January and April, its profits soared by an impressive 11.2%, contributing no less than 3.6 percentage points to the industry's total growth. To put it in perspective, within this category, seven out of eight sub-sectors posted double-digit increases! This signals a solid rebound in demand for machinery and technological solutions.

Leading this push are manufacturers of specialized equipment (with a +13.2% increase) and general machinery (+11.7%). Concurrently, consumer goods industries, such as home appliances, also showed good dynamism, partly thanks to inventory renewal policies and programs aimed at boosting consumption.

Manufacturers of specialized equipment and general machinery led the push with growth of 13.2% and 11.7%, respectively.

Expert Perspectives and Ongoing Challenges

For Yu Weining, an analyst at the NBS (National Bureau of Statistics), these results are evidence of a structural improvement in China's industrial fabric. However, he also points out that the recovery still faces significant challenges. Weining highlights that the international environment remains volatile, and domestic demand has not yet reached sustained levels that would ensure complete stability.

Given this scenario, there is a consensus among economists: to consolidate the recovery and ensure China meets its macroeconomic goals for 2025, it will be crucial to maintain the current stimulus package, bolster investment in Research and Development (R&D), and continue to support the development of advanced industries.