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The Era of High Profits Is Ending

On August 30, 2012, China Reviews published an article titled “China’s Enterprises Have Left the Era of High Profits Far Behind.” From January to July 2012, the accumulated profits of state-owned enterprises (excluding state-owned financial enterprises) fell by 13.2 percent compared to the same period last year. Of these state-owned enterprises, the total accumulated profits of the central state-owned enterprises declined 10.7%, while the total accumulated profits of local state-owned enterprises declined 18.3%. The profits made by China’ state-owned enterprises have decreased in each of the past seven consecutive months.

“At present, an average of nearly 28 percent of China’s manufacturing industry’s capacity remains idle; 35.5 percent of manufacturing enterprises’ capacity utilization is at 75% or less.”

Source: China Reviews, August 30, 2012