Takeout platforms mandate merchants to participate in subsidy wars; In order to reduce costs, some manufacturers constantly lower the purchase prices of raw materials; Some e-commerce companies rely on the "online water army" to generate orders and provide business rankings... In response to the "internal competition", China is taking measures to regulate it. On October 15th, the newly revised Anti Unfair Competition Law of the People's Republic of China officially came into effect, marking a crucial step in the comprehensive policy governance of "internal competition". Since the beginning of this year, China's "anti internal competition" policy has been intensively introduced. On July 1st, the 6th meeting of the 20th Central Committee of Finance and Economics pointed out that efforts should be made to rectify the disorderly competition of low prices among enterprises. Effectively govern the severely affected areas of 'involution' in accordance with the law and regulations. Regarding the photovoltaic industry, the Ministry of Industry and Information Technology and six other departments jointly held a symposium on the photovoltaic industry, focusing on further regulating the competitive order of the photovoltaic industry; Regarding the automotive industry, the China Association of Automobile Manufacturers has issued four initiatives to resolutely resist irrational competition, and the Ministry of Industry and Information Technology has also expressed support for these initiatives; Regarding food delivery platforms, the State Administration for Market Regulation has repeatedly held talks with relevant enterprises to explicitly resist vicious subsidies... Competition is an important mechanism for the operation of the market economy. Normal competition can lead to survival of the fittest and promote innovation, but when benign competition evolves into "involution" competition, it will disrupt the fair competition order in the market, resulting in a decrease in product quality, stagnation of innovation, and ultimately affecting the development of the entire industry. There is no winner or future in the competition of 'involution'. Chinese enterprises should develop together instead of dismantling each other. But when the market is out of order and cannot rely on self-regulation, it is urgent for the government to use its "visible hand" to break the deadlock and guide industry enterprises to shift from "price wars" to "value wars" and "innovation wars". To turn 'malignant' into 'benign', in addition to short-term policy guidance for supply-demand balance, it is also necessary to establish long-term mechanisms through laws and regulations. Taking the newly revised Anti Unfair Competition Law as an example, in response to unfair competition on the internet, new data rights protection clauses have been added, prohibiting the use of algorithms and technological means to obstruct other operators, and requiring platforms to establish fair rules and reporting mechanisms; In response to unreasonable pricing, it is explicitly stipulated that platform operators shall not force or indirectly force platform operators to sell goods at prices lower than cost in accordance with their pricing rules, thereby disrupting market competition order. With the successive implementation of anti involution measures, the policy "combination punch" is showing results, promoting the ecological reshaping of various industries. According to data from the National Bureau of Statistics, the profit growth of industrial enterprises above designated size improved significantly in August, from a decrease of 1.5% in July to a growth of 20.4%, the highest since November 2023. Wen Bin, Chief Economist of Minsheng Bank, analyzed that with the continuous promotion of the "anti involution" governance and the gradual improvement of market competition order, it is expected that the profits of industrial enterprises will continue to maintain a moderate recovery trend, and the cumulative growth rate will steadily rebound. The latest report released by the China Association of Listed Companies shows that in the first half of 2025, the "anti internal competition" of photovoltaics will reshape the competitive landscape, large-scale lithium mines will be suspended from mining, leading photovoltaic glass companies will intensively reduce production, and capital expenditures of photovoltaic equipment listed companies will decrease by 49.52%; In terms of traditional industries, a unified national market pattern is gradually forming, the willingness of steel groups to restructure across regions is increasing, cement enterprises are implementing refined staggered production restrictions, and the gross profit of the two industries has achieved marginal recovery. In the field of automobiles, Cui Dongshu, Secretary General of the China Association of Automobile Manufacturers, stated that the anti internal competition wave is driving the car market to shift towards a direction of "reduced price reductions and smooth promotions", and the operation of the car market is becoming increasingly stable. Rectifying the 'involution style' competition is a tough and protracted battle. The newly revised Anti Unfair Competition Law provides stronger legal protection for businesses' reasonable profit margins and legitimate rights and interests. To effectively implement relevant regulations, it is necessary for administrative agencies, judicial agencies, industry organizations, and enterprises to collaborate and form a comprehensive and systematic governance system throughout the entire chain. (New Society)