Currently, the involution-style competition has become a crucial issue hindering the high-quality development of the Chinese economy. In the traditional manufacturing sector, some industries have long had low capacity utilization rates. In some emerging industries such as new energy vehicles, lithium batteries, and photovoltaic products, the phenomenon of involution-style competition among enterprises has led to redundant layouts, structural overcapacity, and narrowing profit space in the industrial chain, resulting in involution-style vicious competition.
In theory, the competition for market share among enterprises is a normal phenomenon in the operation of the market economy and a manifestation of the role played by market mechanism. However, in the presence of defects in the market system, due to the lack of unified rules, regulations, and policy guidance, competition may evolve into excessive, disorderly, and homogeneous involution-style vicious competition among enterprises, leading to an imbalance in resource allocation structure, the stagnation of total factor productivity growth, and a decline in innovation momentum. The 2025 Government Work Report clearly states the need to comprehensively rectify the involution-style competition. It can be seen that building a unified national market is not only an inherent requirement for building a high-level socialist market economy system, but also provides a systematic solution for governing the involution-style competition.
