Core Viewpoint - The governance of "involutionary" competition requires coordinated efforts from both supply and demand sides, focusing on expanding domestic demand to absorb excess capacity and promoting supply-side structural reforms to eliminate outdated capacity [1] Group 1: Market Exit Mechanism - The primary cause of "involutionary" competition is insufficient effective demand at the macro level and an inadequate market exit mechanism at the micro level [2] - Many enterprises face homogeneous products and services, leading to price competition below cost, exacerbating market issues [2] - The current market entry is easy, but exit is difficult, resulting in "zombie" enterprises remaining in the market, which can engage in extreme low-price strategies [2] Group 2: Comprehensive Measures - Governance of "involutionary" competition requires a comprehensive approach, including creating a healthy competitive industrial ecosystem [3] - Emphasis on technological innovation and industrial upgrading to shift competition from price to quality, fostering high-level competition driven by innovation [3] - Establishing quality standards to guide industrial upgrades and converting recommended national standards into mandatory ones to avoid low-end price competition [3] - Enhancing market regulation by refining standards for identifying ultra-low price competition and strengthening price regulation in key industries [3] - Regulating local government behavior to eliminate local protectionism and market segmentation, focusing on optimizing the business environment [3] Group 3: Industry Self-Regulation and Global Expansion - Strengthening industry self-regulation through industry associations to enhance market self-regulation and facilitate capacity reduction [4] - Encouraging enterprises to expand internationally through overseas investment and capacity cooperation to establish a global production network [5]

Group 1 - The core viewpoint of the articles highlights the robust growth of consumer spending in China, which significantly contributes to GDP growth, with domestic demand accounting for 68.8% of GDP growth in the first half of the year, and final consumption expenditure contributing 52% [1][3] - The increase in consumer spending is attributed to a series of incremental policies that have effectively stimulated the market, showcasing the potential of China's large-scale economy [1][3] - Consumer preferences are shifting from basic needs to quality and experience, as evidenced by the strong sales of home appliances and cultural products, with retail sales in these categories growing by 30.7%, 25.4%, 24.1%, and 22.9% respectively [1][2] Group 2 - The emergence of new consumer demands is driving growth in niche markets, with initiatives like the "cool economy" and various local events aimed at enhancing consumer experience [2] - Local governments are actively promoting diverse and personalized consumption, with initiatives such as fashion consumption expansion plans and unique local events to stimulate market dynamics [2] - The government has prioritized boosting consumption and investment efficiency as a key task for 2025, with specific action plans to address barriers to consumer spending [3]