The term refers to destructive, excessive competition with little progress, gained prominence after President Xi Jinping vowed to regulate chaotic price wars—especially in sectors like solar, EVs, and steel.Bloomberg (gated) carry the report:Markets are responding positively. Mainland Chinese stocks (CSI 300) have outperformed in JulyMorgan Stanley now prefers A-shares over Hong Kong listingsSolar and steel companies have seen strong gains, amid hopes for coordinated reforms to reduce overcapacity and improve profitability.However, this time reform is harder. Overcapacity now spans competitive private-sector industries, unlike the 2015–2018 reforms focused on state-run coal and steel. Fierce price wars in tech (e.g., Alibaba, JD.com) highlight the challenge.Addressing these imbalances may also require boosting consumer demand—something Beijing has struggled with. Still, analysts see the government’s new tone as a clear, if early, step toward policy action. This article was written by Eamonn Sheridan at www.forexlive.com.