Part 4/14:
Higher energy prices elevate costs for chemicals, plastics, and synthetic fibers, squeezing profit margins already thin — margins fell to just 5.3% in 2025, the lowest in over a decade. While upstream sectors may benefit temporarily, the broader economic impact is negative, especially given China’s vulnerability to energy import costs. This energy crisis compounds an already fragile profit environment, rendering China’s industrial growth more uncertain amid a complex global landscape.