Insight
China economic focus July 2025: is another supply-side reform on the cards?
*Please note that this report only includes an Excel data file if this is indicated in "What's included" below
Report summary
In the July China economic focus, we discuss industries' actions to push back against mutually destructive competition, so-called “involution”, to improve profitability. Excess capacity is eroding the profit margins of China’s industrial sectors. Government stimulus and price wars are driving demand for industrial goods. Electric vehicles and solar power sectors are pushing back against involution through self-disciplined production and acquisitions. Meanwhile, construction-related sectors are preparing for long-term stress as the demand outlook deteriorates. However, we do not expect the government to introduce hard targets on capacity cuts.
Table of contents
- Executive summary
- Strong production doesn’t always mean big profits
- China’s new growth drivers try to survive the price wars
- Construction-related sectors are preparing for long-term stress
- Appendix
Tables and charts
This report includes the following images and tables:
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Utilisation rate of the auto sectorProfit margin of the auto sectorUtilisation rates of the ferrous and non-ferrous metals sectors
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Profit margin of the ferrous and non-ferrous metals sectorsWood Mackenzie's proprietary China dataManufacturing PMIIndustrial production and retail salesTradeInflationPropertyInvestmentMoney supply (M2)
- 1 more item(s)...
What's included
This report contains:
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