CICC: "Anti internal competition" helps to overcome the "middle income trap" and promote high-quality development.

The China Gold Research report stated that what is the purpose of anti-"involution"? First, to help prices rise reasonably. The current economic differentiation between quantity and price is obvious. "Anti-involution" helps improve the supply-demand relationship and promote price recovery. Second, to promote sustainable innovation. The competition level and innovation performance show a "reverse U-shaped" relationship. Moderate competition motivates companies to enjoy incremental profits through innovation and achieve the "escape competition" effect. However, excessive competition leads to meager profits or even losses for companies, suppressing their innovation capabilities, known as the "Bear Peter competition" effect, which is also the stage characterized by "involution" competition. "Anti-involution" can guide companies to compete in a healthy manner, shifting from price competition to value competition, promoting innovation and improving quality. From the perspective of industrial transformation and upgrading, "anti-involution" helps to overcome the "middle technology trap" and promote high-quality development.