China Industrial Profit Growth Slows as Weak Demand Weighs

China’s factories made more money in August, but their profits grew much more slowly than in July.

This happened because people and businesses in China are not buying enough goods.

Factories are still producing a lot, which can create too many products for the available buyers.

Technology factories did especially well because companies are investing heavily in artificial intelligence.

However, industries connected to everyday domestic spending, such as drinks, struggled.

China’s industrial production continued to grow even while profits weakened.

Some manufacturers are therefore trying to sell more products overseas.

This can help Chinese companies, but other countries worry that their own factories may be hurt.

An adviser said China may need policies that raise household incomes and encourage people to spend more.