Core Viewpoint - The article discusses the phenomenon of "involution" in the Chinese business landscape, particularly focusing on the competition between Chinese companies in the Brazilian market, exemplified by the conflict between Didi's 99Food and Meituan's Keeta, highlighting the detrimental effects of such internal competition on brand image and market strategy [5][19][21]. Group 1: Involution in the Chinese Automotive Industry - A report from Germany's WirtschaftsWoche highlights that the competitive environment in China's automotive industry, while seemingly vibrant, is leading to a "price war" that harms the overall market [5]. - The article suggests that this "involution" has now extended to international markets, where Chinese companies are competing against each other rather than focusing on the dominant local players [6][19]. Group 2: Didi's Competitive Strategies in Brazil - Didi's 99Food has employed aggressive tactics against Meituan's Keeta, including a "choose one" exclusivity strategy, where it offers substantial prepayments to merchants to prevent them from partnering with Keeta while allowing them to work with the local leader, iFood [12][19]. - The total investment by Didi in Brazil is reported to be 10 billion reais, with 9 billion allocated to internal competition rather than innovation or combating the market leader [16][19]. Group 3: Consequences of Involution - The article draws parallels between the current situation and past experiences of Chinese motorcycle companies in Southeast Asia, which suffered from price wars that ultimately led to a loss of market share to Japanese brands [20][21]. - It emphasizes that such internal competition not only harms the companies involved but also damages the overall image of Chinese brands in international markets, leading to a collective crisis of reputation [25][30]. Group 4: Call for Change in Business Strategy - The article advocates for a shift from "involution" to "co-creation," urging Chinese companies to focus on expanding markets and creating new demands rather than replicating domestic competition abroad [28][30]. - It stresses the importance of innovation and differentiation in products and services to avoid the pitfalls of low-level competition and to enhance the global standing of Chinese brands [29][30].

Core Viewpoint - The article highlights the phenomenon of "involution" in China's competitive landscape, particularly in the automotive and food delivery sectors, where companies engage in destructive price wars and self-sabotage rather than focusing on innovation and collaboration [1][20][39]. Group 1: Involution in the Automotive Industry - The German publication points out that despite Chinese automotive companies winning globally, they are trapped in a price war that leads to "bad money driving out good" [1]. - The article suggests that this competitive behavior is detrimental to the long-term sustainability and direction of the industry [1]. Group 2: Involution Externalization in Food Delivery - Chinese companies are now exporting their "involution" practices abroad, as seen in the case of Didi's food delivery platform, 99Food, which is engaged in exclusionary tactics against fellow Chinese company Meituan in Brazil [2][20]. - The competitive strategies employed by 99Food, such as the "choose one" policy for merchants, mirror past domestic practices and highlight a troubling trend of self-inflicted harm among Chinese firms [8][9]. Group 3: Legal and Competitive Actions - 99Food has been accused of unfair competition by Meituan, which claims that 99Food's actions in Brazil, including significant prepayments to merchants, are designed to stifle competition [3][10]. - The Brazilian legal system is involved, with Meituan filing lawsuits against 99Food for its aggressive tactics, including keyword advertising that misleads potential customers [12][14]. Group 4: Historical Context and Lessons - The article draws parallels to past failures of Chinese motorcycle companies in Southeast Asia, which engaged in price wars that ultimately led to their market share being overtaken by Japanese brands [21][22]. - It warns that the current food delivery sector may be repeating these mistakes, risking the overall reputation of Chinese brands in international markets [21][26]. Group 5: Call for Change in Competitive Strategy - The article advocates for a shift from "involution" to "co-creation," urging Chinese companies to focus on innovation and collaboration rather than destructive competition [30][40]. - It emphasizes the need for companies to adopt a mindset of creating new markets and demands, rather than merely competing for existing shares [31][32]. Group 6: Implications for Brand Image - The ongoing internal competition among Chinese firms could damage the overall image of Chinese brands, leading to stricter scrutiny and a less favorable business environment abroad [27][28]. - The article stresses that to succeed internationally, Chinese companies must demonstrate innovation and cooperation rather than engage in low-quality, price-driven competition [29][40].