Core Viewpoint - The article discusses the ongoing "involution" competition across various industries in China, emphasizing the need for a unified national market and the government's efforts to regulate and guide this competition to ensure a healthy market environment [2][4][11]. Group 1: Involution Competition - The "involution" competition has escalated from e-commerce and automotive sectors to electronics, food, steel, and cement industries, leading to a detrimental cycle where companies sacrifice profits for market share [2][4]. - The Chinese government, through multiple departments, is actively implementing measures to address this "involution" competition, aiming to break the cycle and promote a healthier market order [2][5][11]. Group 2: Government Measures - The National Development and Reform Commission (NDRC) has introduced guidelines to prevent local governments from offering illegal incentives in areas such as finance, taxes, and resources, focusing on both constraints and guidance [5][6]. - The Ministry of Industry and Information Technology (MIIT) is targeting key industries like automotive and steel to encourage structural adjustments and the elimination of outdated capacities [6][11]. - The State Administration for Market Regulation (SAMR) is conducting targeted actions against unfair competition across a wide range of sectors, including e-commerce and food, to ensure fair market practices [6][9]. Group 3: Price Governance Framework - Recent reforms in the Anti-Unfair Competition Law aim to establish a fair competition review system, prohibiting practices that disrupt market order through below-cost pricing [8][9]. - The NDRC and SAMR are working on revising the pricing law to address predatory pricing and ensure that service pricing is also regulated, enhancing the legal framework for market supervision [9][10]. Group 4: Achievements and Future Directions - Initial results from the government's "combination punches" against "involution" competition show improvements in industries like steel and construction materials, with a gradual recovery in upstream supply chain prices [11]. - The article highlights the need for further reforms in performance evaluation and fiscal systems to eliminate local protectionism and market barriers, which are essential for the successful establishment of a unified national market [11].

Core Viewpoint - The ongoing "price war" across various industries in China, driven by intense competition, has led to a detrimental cycle where companies sacrifice profits to gain market share, prompting government intervention to establish a fair competitive environment and promote a unified national market [1][2]. Group 1: Government Actions - Multiple government departments, including the National Development and Reform Commission (NDRC), Ministry of Industry and Information Technology (MIIT), and State Administration for Market Regulation (SAMR), are implementing comprehensive measures to combat "involution" in competition [2][3]. - The NDRC has issued guidelines to prevent local governments from offering illegal incentives related to finance, taxes, land, and resources, while also promoting mergers and the elimination of inefficient production capacities in industries like refining and steel [3][4]. - The MIIT is focusing on key industries such as automotive and photovoltaic sectors, encouraging structural adjustments and the elimination of outdated capacities, with initiatives like a 60-day payment commitment from major automotive companies [3][4]. Group 2: Regulatory Framework - The recent revision of the Anti-Unfair Competition Law aims to establish a fair competition review system, prohibiting platform operators from forcing sellers to price below cost, thereby addressing the issue of "involution" [5][6]. - The NDRC and SAMR are seeking public input on amendments to the pricing law, which will further link the regulation of "involution" with price governance [5][6]. - Experts believe that the revised pricing law will work in conjunction with anti-monopoly and anti-unfair competition laws to create a more comprehensive market regulation system, fostering a fair competitive environment [6][7]. Group 3: Market Impact - Initial results from the government's "combination punches" against "involution" have shown positive effects, with improvements in capacity management and structural optimization in industries like steel and construction materials, leading to a gradual recovery in upstream prices [6][7]. - The pricing strategies in the automotive, e-commerce, and food delivery sectors are becoming more rational, with a noticeable decrease in chaotic promotional activities [6][7]. - The Central Economic Committee has reiterated the need for legal governance of low-price competition and the orderly exit of outdated capacities, indicating ongoing efforts to regulate the market [7].