China’s anti-involution campaign gains momentum

[SINGAPORE] “Nei juan” or involution, has become a hot topic in China, popping up frequently in social media and public debate. It was an issue that featured repeatedly in conversations with retailers, consumers, business tycoons, civil servants and students on my frequent trips to China.

The term originally described a situation in the countryside, where farmers had been working harder, but their output had barely increased, resulting in per capita returns falling.

Today, involution is used to describe a state of excessive competition that leads to diminishing returns, whether it’s in the workplace, classroom or marketplace. The phenomenon is not unique to China and is also found in varying degrees in Confucian-influenced societies such as Singapore, Hong Kong, South Korea, Japan and Taiwan.