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.