In 2025, profits of the equipment manufacturing sector rose 7.7 percent year on year. This growth contributed 2.8 percentage points to the overall profit increase of major industrial enterprises, making it the largest contributor.

　　The sector"s share of total industrial profits reached 39.8 percent, up 2.6 percentage points from the previous year, reflecting further optimization of the industrial profit structure.

　　High-tech manufacturing continued to show strong momentum, with profits rising 13.3 percent year on year and outpacing the growth rate of all major industrial firms by 12.7 percentage points. Intelligent electronics manufacturing continued to expand with profits in unmanned aerial vehicle manufacturing and intelligent in-vehicle equipment manufacturing surging by 102 percent and 88.8 percent, respectively.

　　Last year, profits at major small and medium-sized enterprises and overseas-invested firms rose 1.4 percent and 4.2 percent year on year, reversing their declines from 2024.

　　Looking ahead, efforts must be made to advance the deep integration of scientific and technological innovation with industrial innovation, accelerate the cultivation of new quality productive forces, and promote the sustained improvement of industrial enterprise performance, Yu noted.

　　REINING IN VICIOUS COMPETITION

　　The steady profit growth recorded last year was partly attributed to China"s crackdown on "involution-style" competition -- a concept that has gained traction in recent years to describe cutthroat market dynamics, where companies aggressively slash prices to gain market share, often resulting in a self-defeating cycle of diminishing returns.

　　Analysts have warned that such unchecked, disorderly competition could create a race to the bottom, stifling innovation and hindering China"s long-term economic development.