China’s Economic Involution: State and Business Strategies
China’s economic involution, characterized by cutthroat, race-to-the-bottom competition, is a symptom rooted in its political and fiscal structure. During the recent economic downturn, the central government, local governments, and businesses entered a self-reinforcing cycle. The central growth targets and debt-reduction pressures pushed local governments to expand investment in state-favored industries, creating low-profit competition and oversupply. The declining revenues further reduced deman
China’s economic involution, characterized by cutthroat, race-to-the-bottom competition, is a symptom rooted in its political and fiscal structure. During the recent economic downturn, the central government, local governments, and businesses entered a self-reinforcing cycle. The central growth targets and debt-reduction pressures pushed local governments to expand investment in state-favored industries, creating low-profit competition and oversupply. The declining revenues further reduced deman
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