Sep 21, 2025

I recently came across news about China’s “Anti-Involution” Campaign and its impact on the global economy. The Chinese government has been facing a slowdown in economic growth, attributed to stagnant domestic investment and weak consumer spending. To address this issue, policymakers in China are focusing on increasing net exports to compensate for the decline in domestic demand.

As part of this strategy, China is intervening in the currency market to boost its net foreign asset position. This move is affecting the spending power of Chinese consumers internationally and making Chinese exports more competitive in foreign markets. Additionally, the government is emphasizing the need to reduce excessive competition and promote innovation within Chinese businesses to drive economic growth.

However, these efforts to address involution competition and regulate behaviors in various sectors have led to a significant slowdown in total fixed asset investment in 2025. This shift in investment patterns could have wide-reaching implications for the Chinese economy and the global market. The government’s focus on efficiency and innovation while curbing excessive competition is a complex issue that is likely to impact both domestic and international economic dynamics in the long term.

Overall, the Chinese government’s Anti-Involution Campaign is reshaping the country’s economic landscape and influencing global economic trends. The emphasis on increasing net exports, promoting innovation, and curbing excessive competition is a response to the current economic challenges faced by China. It remains to be seen how these policies will continue to evolve and impact both Chinese and non-Chinese businesses in the future.

Stay Well!