How China is fighting ‘involution’, with Yanmei Xie

How China is fighting ‘involution’, with Yanmei Xie on x (opens in a new window)How China is fighting ‘involution’, with Yanmei Xie on facebook (opens in a new window)How China is fighting ‘involution’, with Yanmei Xie on linkedin (opens in a new window)How China is fighting ‘involution’, with Yanmei Xie on whatsapp (opens in a new window) Save How China is fighting ‘involution’, with Yanmei Xie on x (opens in a new window)How China is fighting ‘involution’, with Yanmei Xie on facebook (opens in a new window)How China is fighting ‘involution’, with Yanmei Xie on linkedin (opens in a new window)How China is fighting ‘involution’, with Yanmei Xie on whatsapp (opens in a new window) Save PublishedFebruary 13 2026Jump to comments sectionPrint this pageUnlock the Editor’s Digest for freeRoula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.Your browser does not support playing this file but you can still download the MP3 file to play locally.China’s export powerhouse is feeding global demand for cheaper electronics, cars, clothing, and plenty more besides. But the supercharged competition driving that trend is causing problems within China itself, including deflation and thin or negative profit margins. China’s government has recognised the problem, but what is it actually doing in response – and how should the country’s trading partners react? Soumaya speaks to Yanmei Xie, senior associate fellow at the Mercator Institute for China Studies, to discuss.Subscribe to Soumaya's show on Apple, Spotify, Pocket Casts or wherever you listen.Presented by Soumaya Keynes. Produced by Josh Gabert-Doyon and Mischa Frankl-Duval. Manuela Saragosa is the executive producer. Original music and sound design by Breen Turner. The FT head of audio is Cheryl Brumley.For China, ‘involution’ is a blessing as well as a curseWhy China is reluctant to make a much-needed shiftFall in Chinese investment suggests Xi Jinping’s ‘anti-involution’ drive is bitingChina battles price wars in fight against deflationRead a transcript of this episode on FT.comView our accessibility guide.Reuse this content (opens in new window) CommentsJump to comments sectionPromoted Content Follow the topics in this audio Chinese economy Add to myFT Chinese trade Add to myFT The Economics Show with Soumaya Keynes Add to myFT CommentsComments have not been enabled for this article.China’s export powerhouse is feeding global demand for cheaper electronics, cars, clothing, and plenty more besides. But the supercharged competition driving that trend is causing problems within China itself, including deflation and thin or negative profit margins. China’s government has recognised the problem, but what is it actually doing in response – and how should the country’s trading partners react? Soumaya speaks to Yanmei Xie, senior associate fellow at the Mercator Institute for China Studies, to discuss.Subscribe to Soumaya's show on Apple, Spotify, Pocket Casts or wherever you listen.Presented by Soumaya Keynes. Produced by Josh Gabert-Doyon and Mischa Frankl-Duval. Manuela Saragosa is the executive producer. Original music and sound design by Breen Turner. The FT head of audio is Cheryl Brumley.For China, ‘involution’ is a blessing as well as a curseWhy China is reluctant to make a much-needed shiftFall in Chinese investment suggests Xi Jinping’s ‘anti-involution’ drive is bitingChina battles price wars in fight against deflationRead a transcript of this episode on FT.comView our accessibility guide.