ECONOMY

China Acts to Stamp Out ‘Involution’ and Unfair Competition

Published: Aug. 2, 2025 1:18 a.m. GMT+8

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The National Development and Reform Commission’s press conference on Aug. 1, 2025.

China’s top economic planner vowed on Friday to intensify its crackdown on “involution,” pledging to curb disorderly corporate competition, rein in wasteful investment and standardize local governments’ business attraction practices to protect fair market order.

The National Development and Reform Commission (NDRC) announced that it would unify government standards for investment promotion and clearly outline which behaviors are encouraged or prohibited. The objective is to eliminate practices that distort the national market and undermine fair competition.

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China’s NDRC pledged tougher action against “involution,” aiming to curb unfair competition and standardize investment promotion nationwide.
Key measures include revising the Price Law to address predatory pricing, conducting cost surveys, and controlling overcapacity in critical industries.
The government has allocated three tranches of 69 billion yuan each for its “trade in” consumer program, with a fourth tranche due in October as part of a 300 billion yuan plan for 2024.

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