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China’s industrial sector is set for a rebound in 2024, with profits expected to increase by as much as 11%. According to reports, total profits at industrial enterprises with annual revenue of at least 20 million yuan (US$2.8 million) from their main operations fell by 2.3% in 2023. However, improved external demand, particularly from the United States, is expected to drive growth this year.
The projected profit increase follows a 6.8% growth in industrial output in December 2023. The outlook is particularly positive for China’s export-oriented industries, which are expected to benefit from the improved US export outlook. Overall, the rebound in China’s industrial profits is expected to be driven by a combination of factors, including increased demand for goods and services, rising productivity, and favorable government policies.
China’s industrial profits experienced a decline in 2023, with total profits at industrial enterprises with annual revenue of at least 20 million yuan falling by 2.3 per cent from their main operations. However, the outlook for 2024 is positive, with projections indicating a rebound in profits due to improved external demand.
The decline in profits in 2023 can be attributed to a combination of factors, including a slowdown in economic growth, rising raw material costs, and increased competition. The COVID-19 pandemic also had a significant impact on industrial production, causing disruptions to supply chains and reducing demand for certain products.
Despite the challenges faced in 2023, the outlook for China’s industrial profits in 2024 is positive. Improved external demand is expected to drive profits up by between 7 and 11 per cent, with the US export outlook being a key factor. Industrial output also grew by 6.8 per cent in December, indicating a strong recovery in production.
To capitalize on this rebound, Chinese industrial enterprises will need to continue to adapt to changing market conditions and focus on innovation and efficiency. The government’s ongoing efforts to promote high-quality growth and support the development of strategic industries are also expected to contribute to the sector’s recovery.
China’s industrial profits are expected to rebound in 2024 due to an improved US export outlook. The US is China’s largest export market, and any improvement in demand from this market is likely to boost China’s industrial profits. This is particularly true for industries that are heavily reliant on exports, such as electronics, machinery, and textiles.
The US-China trade war had a significant impact on China’s industrial profits, with many companies reporting lower profits due to the tariffs imposed by the US. However, the recent improvement in US-China relations and the removal of some of the tariffs have created a more favorable environment for exports. This, coupled with the expected increase in demand from the US, is likely to result in a significant rebound in China’s industrial profits in 2024.
Another factor that is likely to influence the rebound in China’s industrial profits is the growth in industrial output in December. According to official data, China’s industrial output grew by 6.8 per cent in December, which is the fastest pace in six months. This growth was driven by an increase in production in the electronics, machinery, and automobile industries.
The growth in industrial output is a positive sign for China’s industrial sector, as it indicates that there is strong demand for industrial products. This is likely to translate into higher profits for industrial companies, as they are able to sell more products at higher prices. Additionally, the growth in industrial output is likely to lead to an increase in investment in the sector, which could further boost profits in the coming years.
In conclusion, the improved US export outlook and the growth in industrial output are two key factors that are likely to influence the rebound in China’s industrial profits in 2024. While there are other factors that could impact industrial profits, such as changes in government policy and fluctuations in global demand, these two factors are expected to have the greatest impact on the sector in the coming year.
China’s industrial profits are set for a rebound in 2024, with projections indicating an increase of up to 11% due to an improved US export outlook. According to reports, total profits at industrial enterprises with annual revenue of at least 20 million yuan (US$2.8 million) from their main operations fell by 2.3% in the previous year.
However, the situation is expected to improve significantly, with external demand set to increase, leading to a projected profit increase of between 7 and 11% this year. This prediction is supported by the growth in industrial output, which rose by 6.8% in December.
The improved US export outlook is a significant factor in the projected profit increase for China’s industrial sector. The US is one of China’s major export markets, and a boost in demand from this market is likely to have a positive impact on China’s industrial profits.
Overall, the outlook for China’s industrial sector is positive, with projections indicating a significant rebound in 2024. This is likely to be driven by improved external demand, which is expected to boost China’s industrial output and profits.
Improved external demand and industrial output growth are the main factors contributing to the projected rebound in China’s industrial profits in 2024. According to recent reports, total profits at industrial enterprises with annual revenue of at least 20 million yuan fell by 2.3 per cent last year. However, with industrial output growing by 6.8 per cent in December and an improved US export outlook, profits are expected to increase by between 7 and 11 per cent this year.
The US export outlook is one of the factors that is expected to contribute to the increase in China’s industrial profits in 2024. The improved external demand is expected to lead to an increase in exports, which in turn will boost industrial profits. The US and China have recently reached a trade agreement, which is expected to further strengthen US-China trade relations.
According to recent reports, total profits at industrial enterprises with annual revenue of at least 20 million yuan fell by 2.3 per cent last year.
With industrial output growing by 6.8 per cent in December and an improved US export outlook, profits are expected to increase by between 7 and 11 per cent this year.
China’s industrial output grew by 6.8 per cent in December.
Industrial enterprises with annual revenue of at least 20 million yuan are included in China’s profit statistics.
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