China ’ s economy is facing a new threat

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China’s generous local subsidies have helped it dominate high-tech industries such as electric vehicles and solar panels. But they’ve also helped fuel an oversupply of the same goods and a vicious price war. This new phenomenon of “involution” is damaging the country’s economy, as The Economist’s China economics editor, Simon Cox, explains.
Find out what China’s government could do to turn things around:

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