Law

Breaking the 'involution' requires the key to the rule of law

2026-02-26   

The rule of law is not only a "firewall" to resist unfair competition, but also a "reassurance pill" for enterprises to develop with peace of mind, and an important means to crack the "internal competition". Currently, cracking the "internal competition" is an important issue in the construction of a unified national market. Two cases provide inspiration. A question about strong protection. 40 executives and technical personnel from a subsidiary of a certain automobile company have "switched jobs" to another automobile company. Without technical accumulation or legal sources, this automobile company used the chassis component drawing technology of a certain automobile company to launch a series of electric vehicles in a short period of time, causing a huge loss to the company. How to punish the vicious competition of planned and organized "poaching" and seizing the competitive advantage of others? The Supreme People's Court has applied double punitive damages and ruled that the infringer shall compensate a total of approximately 640 million yuan for the economic losses and reasonable expenses of Jimou Automobile Company's rights protection, setting a new record for the amount of compensation awarded in intellectual property infringement litigation in China. This ruling sets a red line for fair competition in the industry and provides legal guidance for the sustainable development of new energy vehicles. Strong protection can stimulate innovation and creativity. Maintaining a fair competition order in the market through the rule of law is the key to better breaking down internal competition. A question about strong confidence. A mechanical technology company in Jiangsu has been sued for patent infringement three times by its competitors. After winning the first two lawsuits, the other party initiated a third lawsuit when the company applied for listing, attempting to damage the company's reputation and block its development process through litigation. The person in charge of the company decided to respond to the lawsuit and filed a counterclaim. Will law-abiding companies suffer losses from malicious litigation? can't! In the end, the competitor's lawsuit was rejected by the court, and they were ordered to publish a statement to eliminate the impact and compensate the company for reasonable expenses of 400000 yuan. The head of this mechanical technology company bluntly stated that "the rule of law will not let honest people suffer" and "the confidence in the first two lawsuits comes from technology, and the confidence in the third lawsuit comes more from the rule of law". With the guarantee of the rule of law, business entities have confidence. The support of the rule of law as a compliant business entity is also an inherent requirement for rectifying "internal competition". Analyzing the causes of "involution style" competition, the factors are numerous and complex, and insufficient innovation and unfair competition cannot be ignored. This requires law enforcement and judicial agencies to focus on stimulating innovation and maintaining fair competition in the market, using legal methods and means to clarify boundaries, establish rules, and provide strong guarantees. Two cases vividly demonstrate that the rule of law is not only a "firewall" to resist unfair competition, but also a "reassurance pill" for enterprises to develop with peace of mind, and an important means to crack the "internal competition". To effectively use the key to the rule of law to break through the "internal competition", it is necessary to establish a fair competition bottom line through strict and impartial law enforcement and judiciary. Watch the law enforcement. Not long ago, the State Administration for Market Regulation released the top ten typical cases of comprehensive rectification of "internal competition" in 2025. We have increased law enforcement efforts in key areas with prominent "internal competition", highlighted the tone of "strictness", and effectively strengthened law enforcement deterrence. Watch the judiciary. The people's court, through judicial trials, sets judicial "traffic lights" for competitive behavior, effectively combats intellectual property infringement, and promotes the transformation of market competition from low-quality and low-priced competition to high-quality and innovative competition. From a practical perspective, only strict law enforcement and fair judiciary can guide enterprises out of the vicious competition quagmire and promote innovative development through fair competition. To effectively use the key to the rule of law to break through internal competition, it is necessary to increase the supply and guidance of rules. Currently, with the development of platform economy and digital economy, many new challenges have emerged in fields such as artificial intelligence and data rights protection. For example, how to hold accountable the artificial intelligence model structure and parameters of a short video platform's "transformation comic special effects" that are directly used by other companies? How to regulate companies that illegally crawl massive amounts of data and use moving software to "steal pictures and shops"? These are all new types of cases of unfair competition. Timely response through improving legislation, clarifying judicial judgment rules, etc., can make the rules become the "wind vane" leading the healthy development of the industry and maintaining market competition order in emerging fields. The rule of law is an inherent requirement and important guarantee for building a high-level socialist market economy system. By making good use of the key to the rule of law and breaking through the dilemma of "internal competition", we will be able to fully unleash market vitality, accelerate the growth of new quality productive forces, and inject a continuous stream of power into high-quality development. (New Society)

Edit:Quan yi Responsible editor:Wang Xiaoxiao

Source:people.cn

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