China s industrial profits fell 2.3% in 2023, marking the second consecutive yearly decline. The decline was attributed to sluggish demand at home and abroad, adding pressure on economic growth amid a deep property slump and deflationary risks. However, there were signs of improvement with industrial profits rising 16.8% in December. China s economy expanded by 5.2% in 2023, but its recovery has been shaky due to a protracted housing downturn and slowing global growth.