China’s industrial profit growth slowed to 4.2% in August as weak demand offset gains from the country’s AI-driven manufacturing boom. The data highlights continued pressure on Chinese businesses despite strength in high-tech industries.

China's industrial profit growth slowed sharply in August as strong technology manufacturing was offset by weak domestic demand and excess capacity. National Bureau of Statistics data cited by Reuters showed industrial profits rose 4.2% year on year in August, down from 11.2% in July. Profits for January through August increased 15.7%, easing from 17.6% in January-July. Electronics manufacturing remained a standout, with profits in computer, communications and other electronic equipment up 110% over the first eight months.