Anti-involution: China’s market makeover

China’s strive for anti-involution policies is creating new ways for sustainable economic growth. The government is persuading companies to remove inefficient operations, creating strong businesses in a competitive market that fulfils President Xi’s goal of a unified national market. The country’s investment and savings rate is higher than other emerging markets, which has created excess manufacturing capacity and has led to over-production. Insufficient domestic demand has lowered capacity utilisation, with US tariffs also affecting market access and exports. The Central Financial and Economic...