Particle.news

Download on the App Store

Xi Jinping Vows Regulatory Clampdown on Price Wars to Stabilize Economy

China’s ruling party signaled fresh measures to rein in destructive price-cutting after a People’s Daily editorial warned of severe market distortions.

Image
Image

Overview

  • At a Central Financial and Economic Affairs Commission meeting chaired by Xi Jinping on July 1, leaders pledged to regulate "disorderly low-price competition" under existing laws.
  • A People’s Daily front-page editorial urged firms to escape "rat race-style" competition, calling relentless price cuts destructive and counterproductive.
  • An official survey released July 1 showed manufacturing activity contracted in June and factory gate prices remained depressed, underscoring deflationary risks.
  • Executives in the electric vehicle sector warned that ongoing price wars are unsustainable and have eroded industry profitability.
  • Manufacturers have slashed prices to attract buyers as weak domestic demand and US tariffs weigh on export viability.