Beijing warns tech giants to curb ‘involution’ amid AI giveaway war

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China's State Administration for Market Regulation (SAMR) recently summoned leading tech companies to address concerns about "involutionary" competition. This warning comes as these companies are investing heavily in promotional campaigns, particularly for AI applications, ahead of the Lunar New Year. The SAMR "reminded" the platforms to regulate promotional activities and avoid all forms of involutionary competition. The regulator emphasized the need for a fair and competitive market to foster innovation and healthy development within the platform economy. The term "involution" refers to cutthroat, low-quality price competition that Beijing aims to combat due to its negative economic impact.
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