China Crackdown on Price Wars Eases Industrial Profit Fall

China’s industrial companies saw profits decline at a slower pace in July, signaling that efforts to rein in overcapacity may be helping ease pressure from aggressive price competition.

Producers of raw materials, steelmakers, and petroleum refiners all swung from losses to profits during the month. (Photo: Sinopec Facebook)

Industrial profits fell 1.5% year-on-year in July, the mildest drop since May, according to National Bureau of Statistics data released recently. The result beat Bloomberg Economics’ forecast of a 5.8% decline. For the first seven months of the year, profits contracted 1.7%, compared with a 1.8% fall in the first half.

Manufacturing led the improvement, with profits climbing 6.8% in July from a year earlier, up from 1.4% in June, statistician Yu Weining said in a separate statement.

Producers of raw materials, steelmakers, and petroleum refiners all swung from losses to profits during the month.

“Policy measures to promote a reasonable rebound in prices were gradually implemented, driving corporate profitability to recover continuously,” Yu said.