20250910-大公国际-城投企业视角下的反内卷路径研究_6页

I. Introduction to "Involution" Concept

The central policy introduced in July 2024 emphasizes "involution式竞争" (involution-style competition), addressing economic issues like local government over-reliance on subsidies, inefficient investments through CTC enterprises, and market distortions, as reinforced in July 2025 meetings. This policy targets systemic problems in China's economy, requiring CTCs to transition for sustainable development.

II. Manifestations of Involution in CTCs

CTC enterprises exhibit signs of involution through business layout homogenization—focus on parks, tourism, and infrastructure with little innovation—financing issues where debt outstrips income leading to high leverage, and administrative dominance reducing their market autonomy, ultimately fostering ineffective competition.

III. Root Causes

The involution stems from institutional factors like market segmentation and local protectionism, government-enterprise relations dominated by administrative commands outside core services, and CTCs' weak strategic and operational capabilities leading to inefficient projects and reliance on government support.

IV. Key Anti-Involution Pathways

To combat involution, the report suggests redefining performance metrics for CTCs, decoupling them from local growth targets; transforming CTCs from financing entities to urban operators via market-driven operations and innovation; fostering cross-regional collaboration for shared resources; and optimizing central assessments to include cross-regional efficiency.

V. Conclusion

Shifting CTC focuses from scale expansion to quality and efficiency is essential, enabling anti-involution through performance reforms, market integration, cooperative strategies, and better central oversight, ultimately fostering value creation and resource optimization.