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China's Xi Jinping Launches Anti-Involution Campaign to Boost Economy

9/20/2025

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Story summary
  • Chinese President Xi Jinping's anti-involution campaign targets economic stagnation and overcapacity to prevent deflation.
  • "Involution" now refers to competition that reduces profitability, especially in tech and food delivery sectors.
  • The government responds to domestic and foreign market pressures to stabilize the economy and enhance trade relations.
  • Recent policies focus on regulating competition to promote innovation and protect corporate profits.
  • China's 2025 economic slowdown features weak domestic investment and consumer spending, despite a growing trade surplus.