“I think that the areas where you are getting excessive competition are, in a sense, things that are somewhat more commoditised,” Siegel said last week on the sidelines of the third Family Business Summit in Hong Kong, curated by South China Morning Post and Blue Pool Capital.
“If you’re really moving into the domain of far more innovative technology, something much more specialised, something that is not already ready for scale deployment, it’s a different story.”
Involution, or neijuan, describes a hyper-competitive environment where individuals and businesses vie for an edge at any cost, often in saturated markets or resource-constrained settings.
Innovation key to curbing ‘involution’ in China: Two Sigma co-founder
Innovation key to curbing ‘involution’ in China: Two Sigma co-founder
In China, privately owned businesses – from bike-sharing services to EV manufacturers – often engage in ruthless competition to dominate the market at unsustainable prices.
The concept of involution has gained traction in recent years as a slowing economy and declining consumption have intensified competition in a range of sectors. Beijing is determined to curb this trend, with President Xi Jinping stressing the need to avoid “involution-style vicious competition” in July last year.
