China takes aim at ‘race-to-the-bottom’ competition

The phenomenon is particularly pronounced in sectors such as cars, solar panels and e-commerce.PHOTO: AFP

SHENZHEN – The Chinese government is getting serious about reining in a form of cut-throat competition that has seen companies race each other to the bottom – and out of business. 

The phenomenon is termed neijuan or involution, which broadly refers to excessive competition in a saturated space that results in diminishing returns and even stagnation.

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