100-Word Take: China’s industrial profit decline is a risk for India

Ravi Ananthanarayanan
Moneycontrol News

China’s industrial profits were growing at a slower pace but a decline ups the risk factor. In November, profits declined by 1.8% over a year ago, the first decline since December 2015.

Reasons were slowing sales, depressed prices and rising costs. A bruising trade war with the US has coincided with a premeditated slowing of China’s economy.

If the profit decline takes root, China’s domestic demand could suffer and its industry could postpone investment plans. That’s bad news for the global economy.