Recalibrating for quality, sustainable growth era

If one were to judge the priorities of this year's two sessions by the sheer density of cameras and voice recorders, the answer would be unequivocal: it's the economy.

As we step into the opening year of the 15th Five-Year Plan (2026-30), the atmosphere in the Great Hall of the People feels distinctively different. The members of the economic committee of the 14th Chinese People's Political Consultative Conference National Committee have become the undisputed "rock stars" of the event.

As a reporter on the ground, the anxiety and anticipation regarding China's economic trajectory are palpable. But amidst the scrum of interviews, I noticed a significant shift in the narrative — a move away from obsession with speed and scale, toward a more nuanced debate on quality and sustainability.

The buzzword dominating the corridors this year is "anti-involution" (fan neijuan).

For years, "involution" — intense, often fruitless competition — has plagued various sectors, leading to vicious price wars that erode profits and stifle innovation. This year, however, the pushback against this trend has evolved from a complaint into a policy consensus. The government's call to deeply rectify involutionary competition has struck a chord, signaling a determination to break the cycle of low-level homogeneity.

I experienced this sentiment firsthand during an encounter with Li Shufu, the chairman of Geely Automobile, just before the opening meeting of the fourth session of the 14th CPPCC National Committee on Wednesday.

When asked about the brutal competition in the new energy vehicle sector, Li didn't mince words. He declared that the industry needs to move past "price wars" and instead fight "wars of quality, service, brand, and ethics".

"No more involution," he told me. "The NEV sector must enter an era of connotative development."

Li's words reflect a broader awakening across the Chinese industry. The realization is setting in that the era of "low-hanging fruit" — a concept noted by economist Tyler Cowen — is over. The easy growth is gone. To climb the "high platform" of the 15th Five-Year Plan requires a new engine.

This is where the discussions on "new quality productive forces" and capital market reforms come into play. I observed a strong consensus among CPPCC National Committee members that finance must evolve from a mere funding hub into an engine for innovation. The logic is clear: to stop fighting over price (involution), companies must upgrade their technology; to upgrade technology, they need patient capital and a supportive market ecosystem. This shift is not just high-level theory; it is grounded in reality.

As I wrapped up my reporting on the opening day of the two sessions at the Great Hall of the People, one thought stood out: The "anti-involution" campaign is not just about stopping price competition. It is a declaration that China's economy is maturing. The focus has shifted from how fast we can run to how well we can climb.

Contact the writer at renqi@chinadaily.com.cn