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(Yang Xueliang, Senior Vice President of Geely Holding Group. China Association of Automobile Manufacturers/Photo)

Our reporter Xia Zhibin and Shi Yingjing report from Shanghai

"As China's automobile industry has achieved rapid development in the fields of electrification and intelligence, China's automobile exports have also continued to rise. While seeing the achievements, we must be soberly aware that there is still a long way to go to truly become a world-class automobile brand and truly win global respect." Yang Xueliang, senior vice president of Geely Holding Group, said at the 2024 China Automobile Forum.

Yang Xueliang also said: "How can China's automobile globalization be more sustainable? Here we have to talk about the topic of involution or involution. First of all, we need to understand what involution means? The summary of the phenomenon of involution comes from Western academia."

"In 1985, Stanford University Press published an English version of a book by Dr. Huang Zongyi, called 'Small Peasant Economy and Social Change in North China', in which the word involution was first used. The following year, Zhonghua Book Company translated the book into Chinese and translated involution into 'involution'. Since then, the word 'involution' has entered the Chinese academic community," Yang Xueliang introduced.

The reporter of China Business News noticed that Yang Xueliang also gave his opinion on "involution". He said bluntly: "The so-called involution is to launch simple and crude competition in the free market through price cuts; the so-called involution is to disrupt the competition order and make the market environment a mess by not abiding by rules and ethics, disregarding quality and safety, and disregarding industry regulations under relatively stable market demand, just for one's own market share; the so-called involution is low-level competition, no quality growth, and no development with stamina; the so-called involution is to only care about the present and ignore the long-term, and to repeat simple reproduction, only seeking an increase in quantity, not a breakthrough in quality, and no progress. It is a poison to quench thirst for the industry, irresponsible to the country, and misleading consumers."

Yang Xueliang further stated: "Obviously, involution is not a good thing, but we are already in an involutionary environment. We still need to have a positive attitude. Facing the challenges of involution, we must believe in the power of China's rule of law, the power of China's market economy, the power of consumer rationality, the power of China's auto industry, and believe that the economy will definitely develop more healthily."

Yang Xueliang also said frankly: "I believe that the well-known incidents of atmospheric pressure tanks and serious non-compliance with emission standards in the industry will have a fair, just and open legal conclusion, and the truth will be revealed to the world. We can also see that there is a lack of a good legal supervision atmosphere among peers: they don't say it in person, but talk nonsense behind their backs; they don't say it in meetings, but talk nonsense after the meetings. These situations will definitely be improved."

Yang Xueliang said: "We are part of the Chinese auto industry. We must be confident and proactive in our attitude and stand on the side of truth. We cannot be confused about what is right and wrong, and we must not pretend to be confused in the face of major issues. Supporting law-abiding people is to protect ourselves and to protect the orderly competition and sustainable development of the industry. Opposing lawbreakers is to combat internal competition and contribute to breaking out of the vicious circle of internal competition."

"To this day, we are still lucky enough to play cards at the poker table. We hope that our poker friends will strictly abide by the rules. If some poker friends are found to steal cards, change cards, or play fake cards, they should consciously and actively accept the punishment, and should not be angry and demand that the players who abide by the rules be kicked out." Yang Xueliang further added that China's laws must support good money driving out bad money, not the other way around. If this phenomenon continues for a long time, the tragedy of bad money driving out good money will occur.

Yang Xueliang said: "Involution is a derogatory word. Involution is a bad phenomenon. Involution is synonymous with unhealthy competition. Involution is also a silent sorrow. It consumes our intelligence, moral kindness and innovation ability. The result of involution is that all parties involved in involution will fail together and eventually die together due to blood loss. We hope that the word "volume" can disappear from the dictionary of China's auto industry. Until the word "volume" disappears, Chinese cars will never truly go global."

In Yang Xueliang's view, it is necessary to study how to get rid of internal circulation, get out of the vicious circle of internal circulation, move towards a world of healthy competition, and embark on a standardized development track. This is not only the responsibility of an automobile company, but also related to the future and destiny of the entire Chinese automobile industry.

"China's motorcycle industry has gone through a path similar to that of today's automobile industry. It was once popular all over the world, and almost all of Southeast Asia was made in China. But today, Chinese motorcycles are almost nowhere to be seen in Southeast Asia. What's the reason? Crazy price wars have squeezed profit margins and even more so quality margins." Yang Xueliang expressed the hope that the entire industry will actively participate in the industry order rectification campaign, and through the formation of ideological consensus and practical actions by government and enterprises, China's automobile industry will truly develop in a high-quality, healthy and sustainable manner.

Yang Xueliang said that in the face of the current challenges of internal competition in the automotive industry, automakers must neither be careless nor panic, and must clearly see the essence of internal competition. "As long as we actively face the challenges of internal competition, insist on competing in accordance with the law, take a long-term view, insist on laying a solid foundation, practicing internal skills, and insist on quality, service and sustainable development, we will definitely get out of the vicious circle of internal competition."

Yang Xueliang also gave suggestions, such as adhering to the law of development, maintaining strategic patience, striving for strategic initiative, respecting the legal red line, adhering to the moral bottom line, highlighting cost-effective competitiveness, not engaging in simple and crude price wars, but engaging in high-quality price wars. Not only high-quality price wars, but also technology wars, quality wars, service wars, brand wars, and corporate moral wars.

Yang Xueliang also said that we must adhere to global compliance operations, adhere to the domestic economic cycle as the main body, promote the mutual development of domestic and international dual cycles, adhere to global R&D, global talents, and global markets, adhere to the right path, create great business, always be responsible for the brand, and always satisfy customers. "Only in this way can Chinese auto brands truly become world-class brands and win the respect of the world."

(Editor: Shi Yingjing Reviewer: Tong Haihua Proofreader: Yan Jingning)