Beijing: Profits at industrial companies in China fell in October following rises in the previous two months.

According to Anadolu Agency, the National Bureau of Statistics reported that the total profits of industrial enterprises with an annual turnover exceeding 20 million yuan (approximately $2.82 million) dropped 5.5% in October 2025 compared to the same period last year.

Throughout the year, profits initially gained 1.4% year-on-year in the first four months on average. However, negative results from May to July pushed the average ratio down to minus 1.7%.

Subsequent jumps of 20.4% in August and 21.6% in September shifted the profitability ratio to a positive 3.2%. Despite these gains, the October figures caused the profitability ratio to drop to 1.9% on average.

The uncertainty caused by escalating trade tensions between the US and China, driven by mutual tariff hikes, has adversely affected companies' performance in recent months. Profitability, however, has shown signs of recovery with the emergence of a consensus trend in tariff negotiations between the two countries.