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