破内卷死局，最终可能还是要靠消费

Group 1 - The concept of "involution" describes a situation where increased labor input does not lead to increased output, originally identified in agricultural societies [1][10] - In the current context, involution is driven by people's desire to maintain or increase their income, leading to excessive competition in various industries [2][3] - The automotive and solar energy sectors in China exemplify this phenomenon, with over 100 car manufacturers and numerous solar component producers competing for market share, resulting in overproduction [3][4] Group 2 - Intense competition can foster innovation, but it also leads to price wars, losses, and bad debts, creating a serious issue for companies [4][6] - Continuous involution may result in a downward spiral of prices, as companies lower prices to remain competitive, which can create long-term expectations of falling prices among consumers [6][10] - The Chinese government is attempting to stabilize prices and reduce subsidies to combat involution, recognizing that reliance on investment rather than consumption has led to overcapacity [7][11] Group 3 - The challenge of addressing involution lies in the need to balance reducing production capacity with maintaining employment levels, as excessive market corrections could exacerbate job pressures [10][11] - Efforts to stabilize prices include engaging with manufacturers and forming industry alliances to mitigate price wars, while also signaling local governments to refrain from supporting loss-making enterprises [11][12] - The historical context of involution in Japan during the 1990s serves as a cautionary tale for current market dynamics [6][8] Group 4 - To stimulate domestic consumption, which currently accounts for about 40% of GDP, measures such as improving social security systems and increasing household incomes are essential [11][13] - The low level of domestic consumption is partly due to families saving to compensate for inadequate social security, highlighting the need for comprehensive reforms [13][14] - The transition from an investment-driven growth model to one reliant on consumption is crucial for achieving sustainable economic growth and addressing involution [14]