China Industrial Profits Rise as Overseas Demand Improves.

Profits at China's industrial companies increased by 4% in April compared to the previous year, as exports saw growth during the same month. This positive trend in industrial profits comes after a drop in March, which ended seven consecutive months of increases. China's strong industrial output has caused tension with countries like the US and Europe, who have criticized China for flooding the global market with cheap goods. Chinese policymakers are relying on the industrial sector to offset weak domestic demand and achieve this year's growth target of around 5%. However, weaknesses within the economy, such as cooling consumer spending and deteriorating property sector metrics, are impacting overall activity. To stimulate the domestic market, authorities are under pressure to implement more fiscal and monetary stimulus, including potential interest rate cuts and subsidies for trade-ins of older models in the automotive and household appliance sectors. The government has also announced a rescue package for the property sector, although analysts are skeptical about its effectiveness in ending the real estate slump. [Extracted from the article]

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