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China takes aim at ‘race-to-the-bottom’ competition
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The phenomenon is particularly pronounced in sectors such as cars, solar panels and e-commerce.
PHOTO: AFP
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SHENZHEN – The Chinese government is getting serious about reining in a form of cut-throat competition that has seen companies race one another to the bottom – and out of business.
The phenomenon is termed neijuan, or involution, which broadly refers to excessive competition in a saturated space that results in diminishing returns, and even stagnation.
