China’s state regulator urges SOEs to avoid ’involution-style’ competition

China's state regulator has called on state-owned enterprises (SOEs) to steer clear of 'involution-style' competition, which refers to a race to the bottom that can stifle innovation and growth. This guidance is significant as it aims to promote healthier competition among SOEs, encouraging them to focus on quality and efficiency rather than merely outdoing each other in a detrimental manner. By addressing this issue, the regulator hopes to foster a more sustainable economic environment.