Mei Ri Jing Ji Xin Wen·2025-07-19 13:50Core Viewpoint - The phenomenon of "involution" is pervasive across individuals, enterprises, and industries, leading to a situation where effort and innovation yield diminishing returns, prompting calls for systemic solutions to address this issue [1][4][6]. Group 1: Causes of Involution - The photovoltaic industry is highlighted as a prime example of severe "involution," with projected losses exceeding 60 billion yuan in 2024, despite its global leadership in patents and market share [4]. - Factors contributing to "involution" include insufficient demand leading to price wars, and an oversupply situation where production capacity exceeds demand by 100% [5][6]. - The lack of effective resource allocation and innovation within companies exacerbates the issue, as firms engage in price competition without enhancing product value [5][10]. Group 2: Solutions to Involution - Companies are encouraged to innovate and explore international markets as strategies to combat "involution," with differentiation and creating barriers to entry being crucial [6][9]. - A shift in corporate culture from aggressive competition to collaborative innovation is recommended, fostering a more harmonious ecosystem among competitors [10]. - Government intervention is deemed essential, focusing on creating a competitive environment that protects intellectual property and encourages diverse forms of competition [10][11].