Beijing warns tech giants to curb ‘involution’ amid AI giveaway war
South China Morning Post
by Ann CaoFebruary 15, 2026
AI-Generated Deep Dive Summary
China’s top market regulator has issued a stern warning to the country’s leading tech companies, urging them to end what it calls “involutionary” competition. This comes amid a fierce promotional battle among tech giants as they invest heavily in Lunar New Year campaigns to attract users for AI-powered services. The State Administration for Market Regulation (SAMR) has called on these platforms to avoid low-quality price wars and instead focus on fostering innovation and sustainable growth in the platform economy. The regulator emphasized the need for fair competition, stressing that such practices harm economic development and must be curtailed.
The term “involution,” or neijuan, refers to cutthroat competition characterized by aggressive promotions and discounts, often at the expense of quality and sustainability. This practice has become a growing concern in China, particularly in sectors like AI apps, e-commerce, and food delivery. The SAMR’s intervention highlights Beijing’s broader efforts to combat this phenomenon, which it sees as counterproductive to long-term economic health
Verticals
worldasia
Originally published on South China Morning Post on 2/15/2026