China’s government is done with watching the country’s car industry going at war with itself. Officials are concerned that the ongoing EV price war threatens the nation’s economic growth and is demanding automakers take action. And if they don’t take action, the government has plans to do it for them.
President Xi Jinping gave a couple of speeches recently in which he warned off the dangers of “involution,” where businesses invest ever larger sums of money and get less back. He was referring to the boom in multiple sectors, including AI and computing power, The Guardian reports, but one of the big villains Xi had in mind is the car industry.
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