# state-owned enterprises

China’s State Firms See Profits Slip in 2025 Despite Flat Revenues, Raising Questions for Beijing’s Growth and Reform Strategy

China’s state-controlled firms posted a 6.3% drop in profits for 2025 despite a 0.5% rise in revenue, with total profits around ¥4.04 trillion and an asset‑liability ratio of 65.1%. The data highlight margin pressure across SOEs and present Beijing with a choice between fiscal support and deeper restructuring.