In recent years, China’s economy has moved away from the high-speed growth trajectory that once defined it, entering instead a more complex and contradictory stage. The headline figure for 2025—industrial companies’ total profits rising by just 0.6 percent to 7.39 trillion yuan—may look positive at first glance. Yet beneath this modest increase lie serious challenges: persistent U.S.–China trade tensions, tariff wars, structural inefficiencies, and the broader uncertainty clouding the global economy.
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