In the auto industry, Dongfeng Motor Co. Ltd., the local partner of Nissan Motor Corp., warned last week its first-half profit will be down 60 to 70 percent.
Auto sales rose 3 percent in the first half of the year, but that was down from double-digit growth of recent years. A sales boom in 2009-10, driven by tax cuts and subsidies, prompted brands to expand production capacity, leading to abundant supplies and squeezing profits once the incentives ended.
Smaller and private companies face even tougher conditions and possible losses.
Da Ming International Holdings Ltd., which says it is China's biggest processor of stainless steel used in manufacturing automobiles, appliances and other products, warned Wednesday it expects to suffer a first-half loss due to falling prices for its products.
AP researchers Yu Bing in Beijing and Fu Ting in Shanghai contributed.
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