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The involution that China has recently promoted is creating intense competition in the private sector, especially during trade wars, resulting in excessive stocks and inventories that must be cleared quickly to prevent losses. These problems will intensify the deflationary pressure on China's economy. Xi vowed to tackle the involution problem. It is easier said than done unless he can help solve the losses now occurring in the private sector.

https://www.reuters.com/markets/asia/chi...025-07-01/