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On May 20, at a press conference held by the **Development and Reform Commission**, Li Chao, deputy director of the Policy Research Office of the commission and its spokesperson, said that currently China’s economy is in a period of transition from old to new drivers of growth; new industries, business models, and forms of operation are emerging one after another, while traditional industries are accelerating their transformation and upgrading. During this process, certain industries did face structural problems; some engaged in reckless investment, while others failed to keep up with the pace of technological advancements. “Some companies are trapped in ‘competitive escalation’, with some selling at low prices, extremely low prices, or even below cost; others produce and sell fake products or pass off inferior goods as high-quality ones. All of these exceed the boundaries and limits of market competition, distort market mechanisms, and disrupt the order of fair competition; they must be rectified. ”Li Chao said. How to address \"involutionary\" competition? Li Chao said that the Development and Reform Commission, in conjunction with relevant parties, will target the root causes of these problems, adopt measures tailored to specific industries, and address both the symptoms and underlying issues in order to resolve the structural contradictions in key industries and promote their healthy development as well as quality improvement. First, adhere to innovation-driven development and accelerate the transformation and upgrading of the industry. Strengthen the role of enterprises as the main drivers of technological innovation, support them in using such innovation to improve product quality and core competitiveness, increase high-end production capacity and high-quality supply, continuously explore diversified markets, and enhance their resilience in development. Second, strengthen local constraints and make greater efforts to eliminate local protectionism and market segmentation. In January of this year, the \"Guidelines for the Development of a Unified National Market (Trial Version)\\" were issued, requiring all regions to refrain from implementing preferential policies in areas such as finance, taxes, prices, land use, and resources and the environment beyond the established limits. Efforts are being made to address the persistent issues of local protectionism and market segmentation, which keep emerging in new forms. Third, optimize the industrial layout to curb the uncontrolled expansion of outdated production capacity. Leverage the role of quality and standards as a support mechanism, promote mergers and reorganizations through market-based approaches, and accelerate the phasing out of inefficient and outdated production capacities in industries such as oil refining and steel manufacturing ； Scientifically evaluate new capacity expansion projects in industries such as coal chemical processing and alumina production, to prevent blind new construction ； Strengthen industry self-discipline and encourage new energy vehicle and photovoltaic enterprises to focus on technological research and development. Fourth, strengthen market supervision to purify the competitive environment in the market. Tough measures will be taken to address issues such as low-quality products at low prices in the market; unfair competition and price-related illegal activities will be investigated and dealt with in accordance with the law. Acts of infringement, counterfeiting, and production and sale of fake goods will be firmly cracked down on. Efforts to strengthen quality supervision and inspection will be increased, so as to jointly maintain a market order based on fair competition and the principle of survival of the fittest, and to ensure that the mechanisms of the market can function effectively.