LBX(SH:603883) Sou Hu Cai Jing·2025-10-30 03:16Economic Overview - The current economic environment in China is characterized by a significant restructuring phase, affecting various sectors and individuals alike [1][5][19] - Economic cycles such as the pig cycle, capacity cycle, technology cycle, and real estate cycle are all peaking simultaneously, leading to widespread financial strain among the populace [3][5] Industry Insights - The automotive industry exemplifies the current state of economic "involution," with severe overcapacity and a mismatch between production and consumer demand [7][9] - Over 400 automotive companies in China have a total design capacity exceeding 35 million vehicles, far surpassing domestic demand, resulting in many smaller firms exiting the market [7][9] - The manufacturing sector is experiencing a similar trend, with companies facing overcapacity, weak demand, and intense competition, leading to widespread layoffs across various roles [9][10] Global Expansion - In response to domestic challenges, many companies are looking to expand overseas, with significant investment growth in countries like Vietnam and Indonesia [11][13] - Successful examples include companies like CATL, which have localized their operations abroad to mitigate trade barriers and better serve local markets [13] Workforce Adaptation - The job market is evolving, with a notable increase in demand for new roles such as AI trainers and carbon neutrality managers, reflecting the need for skill upgrades among workers [15][17] - The competition among cities is intensifying, with emerging regions like the Chengdu-Chongqing economic circle attracting young talent due to their focus on industrial ecology and supportive policies [17] Policy Support - The Chinese government is implementing policies to support "specialized, refined, and innovative" enterprises, enhancing R&D tax deductions to stimulate innovation [17] - The shift in focus from resource allocation to efficiency and quality is emphasized as a critical factor for both companies and individuals to thrive in the changing economic landscape [17][19]