Core Viewpoint - The State Administration for Market Regulation has exposed typical cases of "involution" competition in the quality sector, highlighting that companies are sacrificing brand, quality, and technology for short-term market share and profits, leading to a decline in product quality and harming consumer rights [1][2] Group 1: Causes of Involution Competition - Structural imbalance in supply and demand, with some industries facing weak demand and overcapacity, forcing existing companies to compete within limited market space [2] - Some companies focus on immediate profits, lacking innovation and differentiation, resorting to cost-cutting and price wars, and even engaging in counterfeiting, disregarding legal boundaries [2] - Inadequate regulatory mechanisms in certain areas provide opportunities for companies to take risks and breach standards [2] Group 2: Regulatory Measures - Strengthening market access management to alleviate supply-demand conflicts by enforcing strict production licensing for 14 categories and 27 types of key industrial products, raising market entry barriers to reduce excessive entry and prevent low-quality competition [2] - Enhancing quality safety supervision and regulating fair competition by increasing national sampling inspections of online products by 70% in 2025 compared to 2024, and conducting quality safety rectification for electric bicycles, gas appliances, and building insulation materials [2] - Providing enterprise support to improve product quality through targeted assistance programs for specific industries, and promoting a product quality grading pilot program to encourage orderly competition [2]