Qi Huo Ri Bao Wang·2025-09-15 00:32Group 1: Concept and Causes of "Involution" - The concept of "involution" refers to a cultural pattern that becomes increasingly complex without transitioning to a new form, leading to inefficient competition among peers for market share without significant gains [2] - The causes of "involutionary" competition can be summarized into five aspects: macroeconomic supply-demand mismatch, industry reliance on international markets for raw materials and technology, short-term profit focus by enterprises, local government performance pressures, and external trade friction [3] Group 2: Dangers of "Involutionary" Competition - "Involutionary" competition leads to cost-cutting measures that result in thin or negative profits, reduced innovation capacity, and lower product quality, ultimately harming consumer interests [4] - It disrupts the entire industry ecosystem by causing inefficient resource allocation, hindering innovation, and damaging industry reputation and consumer trust [4] - On a macro level, it results in a failure of market elimination mechanisms, waste of social resources, and potential long-term sustainability issues [4] Group 3: Impact on the Rubber Industry - The rubber industry is experiencing "involutionary" competition characterized by low-quality, homogeneous products and overcapacity, leading to thin or negative profits [5] - In the first half of 2025, the rubber industry saw an increase in production, inventory, sales revenue, and export value, but profits decreased by 0.63%, indicating a troubling trend despite higher sales [5] - The fundamental cause of "involution" in the rubber industry is identified as a supply-demand mismatch, with minimal product differentiation leading to price wars [5] Group 4: "Anti-Involution" Initiatives - The "anti-involution" initiative aims to regulate low-price disorderly competition and guide enterprises to enhance product quality while phasing out outdated production capacity [13] - The government has introduced various policies to combat "involutionary" competition, including amendments to the Anti-Unfair Competition Law and directives for key industries like automotive and chemicals [13][14] - The "anti-involution" measures are expected to improve market conditions, enhance pricing power for leading firms, and promote industry consolidation [17] Group 5: Long-term Effects of "Anti-Involution" on the Rubber Industry - The "anti-involution" policies are anticipated to lead to increased industry concentration, improved profitability, and a focus on research and technological innovation [15][18] - Companies are expected to prioritize sustainable development and shift from short-term profit pursuits to long-term value creation [19] - The industry is likely to expand its global footprint to mitigate risks associated with trade policies and enhance operational efficiency [20]