Manufacturing industry see profit drop

In the first two months, china’s industrial businesses saw a big decrease in profit in three years; during the first two months of 2011, their profits increased by 34.3 percent.

In China, many manufacturers said the country’s economic condition is worsening and put more pressure on them as export is shrinking and other elements influenced their business directly or indirectly such as property prices, which means the manufacturers need to pay more for leasing a factory or leasing apartment providing for the working staff.

According to a statement from the National Bureau of Statistics on Tuesday in the first two months, industrial companies’ net income decreased by 5.2 percent from a year before, hitting 606 billio
Yuan ($96 billion). On the contrary, their net income had increased by 25% in 2011.
China government is attempting to loosen monetary policies to stimulate investing and manufacturing to tackle the manufacturing industry slowdown problem.

China’s economy continues to grow slowly amid weak demand from overseas markets and the country’s GDP growth rate may hit its lowest point for the year in the first quarter.
Manufacturers must try every means to get more orders from domestic and overseas buyers. For those SMEs, who are struggling for survival, can seek more business opportunities on some B2B websites.

IBUonline is a B2B platform, which has helped many SMEs to find international trade business partners.