Profits at Foreign Firms in China Plunge Despite Easing in Covid
- Foreign industrial firms see 16.1% drop in profits in Jan-May
- Economy is making gradual recovery as Covid restrictions ease
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Profits at foreign industrial businesses in China showed no sign of rebound in the first five months of the year even as an easing in Covid restrictions allowed companies to resume production and improve logistics and sales.
Foreign firms saw a drop of 16.1% in their profits during the January-to-May period from a year earlier, a similar contraction to the first four months of the year. In contrast, profits across all industrial companies in China gained 1% in the five-month period.