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Michael Pettis, economist, professor of finance, nonresident senior fellow, author, macroeconomic analyst at Peking University; Carnegie Endowment for International Peace, highlights that while industrial profits in China have shown resilience, the recovery remains inconsistent across different sectors.
Some consumer goods manufacturers, property-linked industries, and processing sectors continue to experience margin pressure, underlining the need for more targeted support.
Pettis has previously highlighted concerns about hidden bad debt in China's banking sector after the Huaxia Bank case. He has also argued that the Chinese economy depends on expanding its global manufacturing share based on competitive advantages, according to a recent analysis. These points reflect ongoing challenges facing Chinese industry and finance.