China: Industrial Profits Fall
Volkswagen sold the plant in Xinjiang
China’s industrial profits fell 10% in October compared to the same month in 2023. According to an analysis released by China’s National Bureau of Statistics (NBS), the decline was due to “persistent deflationary pressures and rather weak demand.” However, Chinese experts emphasized that the negative trend is weakening, with industrial profits collapsing 27.1 percent in September.
The Chinese government has set a 2024 gross domestic product growth target of “around 5%,” which risks being jeopardized by new tariffs on Chinese goods expected by US President-elect Donald Trump.
The effects of the economic crisis in Germany have reached China, where German car manufacturer Volkswagen has sold its plant in Urumqi, Xinjiang province. Volkswagen has invested 170 million euros in the Chinese plant. The plant was launched in 2012 in conjunction with Chinese state-owned SAIC.
