[yorwba]

Competition reduces profits, which is good for consumers, but bad for investors. China has a bit of a problem with hype-driven investment, where something becomes a new trend (solar energy, bike sharing, electric cars...), lots of new companies get started, followed by oversupply, followed by price wars, followed by bankruptcies. Of course every company hopes that it will be the others that go bankrupt, so during the price-war phase, they take on a lot of debt to keep operating just a bit longer. In the worst case, there could be a wave of bankruptcies developing into a full-blown economic crisis.