Anti-Involution Campaign.

Economically, the government is ramping up what it calls its anti-involution campaign. Neijuan (involution) describes the rat race of hyper-competition that has led to price wars and overcapacity in sectors like EVs and solar panels. Today, the IMF suggested that while this campaign is a step toward balancing the economy, China needs more aggressive reforms to shift its focus away from industrial subsidies and toward boosting domestic household consumption to ensure long-term stability.

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