China industrial profits surge 15% to start year, but oil price shock threatens outlook
An oil tanker unloads crude oil from a terminal at Qingdao port in China’s eastern Shandong province on March 11, 2026.
– | Afp | Getty Images
Chinese industrial firms saw profits rise in the first two months of this year as authorities continued efforts to contain the effects of industrial overcapacity and lackluster consumer demand.
Office for National Statistics data showed on Friday that industrial profits rose 15.2% in January-February from a year earlier, marking a sharp recovery from a 5.3% rise in December.
For the full year 2025, China’s industrial profits rose 0.6% from a year ago; It ended three consecutive years of declines as authorities reined in aggressive price competition and companies doubled exports to meet overseas demand.
Beijing is trying to control the effects of the disruption in oil shipments from the Middle East triggered by US-Israeli attacks on Iran. Tehran has since disrupted global energy markets by closing the Strait of Hormuz, a critical waterway for energy flows, to most commercial ships.
China raised ceiling prices for retail gasoline and diesel earlier this week as the effects of the rise in global oil prices began to seep into the economy, but eased the hike to about half the price it would normally charge in a bid to ease the shock to consumers.
However, rising energy prices are expected to affect the world’s second largest economy less than many other countries due to its huge oil reserves and alternative energy sources. Iran has also continued to send millions of barrels of crude oil to China since the start of the war.
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