At China’s July Politburo meeting, a statement criticized unhealthy competition and “anti-involution,” a term reflecting diminishing opportunities in a hyper-competitive society. This warning appears relevant across various industries, including Evs and solar panels. Specifically, it targets e-commerce platforms, which have been exacerbating price wars and excessive competition. The sharp decline in PDD Holdings’ share price, which fell 28.5% in August, underscores investor concerns and the government’s disapproval of such practices. E-commerce giants like Pinduoduo, JD.com, and Alibaba are engaged in fierce competition, leading to unsustainable practices that harm merchants and undermine long-term economic goals. The government aims to address these issues through gentle persuasion rather than strict regulation.