Core Viewpoint - The article discusses the need to address "involution" in competition within industries, emphasizing that the root cause lies in the extreme unfairness of resource distribution, where 98% of people compete for only 20% of resources, leading to a cycle of inefficiency and pressure to overwork [2]. Group 1: Involution and Its Causes - Involution is driven by an extremely unfair distribution of resources, compelling individuals to work harder to secure a share of wealth [2]. - The total wealth produced is a function of production efficiency and time, with individuals having limited means to increase their wealth other than working longer hours [2]. - Companies face similar pressures, often resorting to lowering prices to capture a larger share of the distribution [2]. Group 2: Government and Policy Responses - The National Development and Reform Commission (NDRC) emphasizes the need for market-driven price mechanisms, suggesting that prices should be determined by market forces wherever possible [9]. - The NDRC's approach includes a systematic view and comprehensive measures to address issues, promoting the efficient flow of high-quality production factors [9]. Group 3: Industry Implications - The article suggests that addressing involution may lead to the elimination of low-quality enterprises while retaining those that meet higher standards, as seen in the charging treasure industry where stricter regulations can lead to the exit of weaker players [4]. - There are concerns that reducing production capacity to combat involution could result in layoffs and salary reductions, as fewer workers may be needed if capacity is decreased [8]. Group 4: Historical Context - The article contrasts the current situation with the supply-side reforms of 2015, which primarily targeted internal issues, while the current context involves both internal and external factors influencing the economy [11]. - The article notes that the execution strength of state-owned enterprises (SOEs) was a significant factor in the 2015 reforms, raising questions about which capacities will be reduced in the current environment dominated by private enterprises [10].