Private companies in China are making money, while state-owned firms lag

Industrial profits in China grew by 15.5% in the first three months of 2026. This growth was driven by private companies, which saw profits jump by 25.4%, while foreign-invested firms barely grew and state-owned enterprises grew much slower.

China's economy is trying to shift away from heavy state control and towards more market-driven growth. These numbers show that private businesses are responding to incentives and driving profit, while the state-owned sector is not keeping pace. This suggests that the government's efforts to stimulate the economy are working better for private capital than for its own enterprises.