FICC Research Credit Research 4 December 2025 Special Topic China's overcapacity troubles High inventories, price declines, and under-utilisation to push local producers to look for alternative, overseas markets - an unintended consequence of the anti-involution policy. As such, fertilisers, household appliances, and integrated circuits look vulnerable. Anti-involution matters: The policy intends to break the domestic cycle of price wars, overcapacity, and margin erosion in China. As China's approach to eco ...