China's Industrial Profits Fall Amid US Tariffs

China's industrial profits fell by 0.3% in the first two months of 2025 compared to the previous year, indicating a fragile economic recovery amid looming US tariffs. This decline follows a slight rebound in December 2024 but continues a three-year streak of profit contractions. The Chinese economy faces persistent deflationary pressures, a sluggish export market, and subdued domestic demand, pressuring policymakers to increase fiscal stimulus. The US has imposed additional tariffs on Chinese goods, exacerbating trade tensions and impacting China's growth prospects. Despite these challenges, state-owned and foreign firms reported profit gains, while private-sector companies saw a 9% fall. Analysts suggest that achieving China's growth target of around 5% will require further stimulus, as recent measures have not fully offset the headwinds from global trade tensions and a domestic real estate slump.