China's industrial profits slipped in the first two months of 2025, as businesses navigate persistent deflationary pressures and an escalating trade war with the United States.

Industrial profits fell 0.3% in the January-February period from the same period last year, according to data released by the National Bureau of Statistics (NBS). That compared with an 11% increase in earnings in December.

Profits at state-owned firms rose 2.1% in the first two months, foreign firms recorded a 4.9% gain and private-sector companies posted a 9% fall, according to a breakdown of the NBS data.

Industrial profit numbers cover firms with annual revenue of at least 20 million yuan ($2.75 million) from their main operations.

The economy got off to an uneven start this year, as retail sales growth accelerated while consumer and producer prices contracted and exports remained sluggish, maintaining pressure on policymakers to ramp up stimulus.

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