China plans to amend a decades-old pricing law as part of an ongoing campaign to curb the vicious price wars plaguing several industries \u2013 a deep-rooted issue that threatens to wipe out corporate profits and fuel deflationary pressure.<\/p>\n
The amendment, which covers 10 clauses in the law, updates the definition of unfair pricing practices to include \u201cinvolution-style\u201d competition, according to a draft released by China\u2019s National Development and Reform Commission (NDRC) and the State Administration for Market Regulation on Thursday.<\/p>\n
The term \u201cinvolution\u201d has become a buzzword in China that refers to the excessive, cutthroat style of competition that has emerged in several industries, as companies facing weak domestic demand and oversupply problems slash prices in a bid to attract customers.<\/p>\n
The trend has become a serious concern<\/a> for Beijing in recent months, with Chinese officials repeatedly vowing to stamp out<\/a> the price wars and criticising companies that engage in \u201cdisorderly\u201d styles of competition that risk undermining economic growth.<\/p>\n As China\u2019s economic landscape had undergone profound changes, the pricing law that originally came into effect in 1998 needed to be updated, government agencies said in a statement.<\/p>\n \u201cWith new economic forms and business models continuing to emerge, some industries have seen prominent cases of disorderly low-price competition, creating new demand for price regulation and oversight,\u201d the statement said.<\/p>\n The amendment, which is open for public comment until August 23, adds a new clause stating that businesses shall not force other operators to dump products at below-cost prices. Previously, the law only banned firms from selling goods below cost to eliminate competitors or monopolise the market.<\/p>\n","protected":false},"excerpt":{"rendered":"China plans to amend a decades-old pricing law as part of an ongoing campaign to curb the vicious…\n","protected":false},"author":2,"featured_media":292141,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3090],"tags":[108675,3801,51,1395,108672,70824,98416,108673,6314,1700,108677,108674,108671,96268,108676,5440,22786,16,15],"class_list":{"0":"post-292140","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-august-23","9":"tag-beijing","10":"tag-business","11":"tag-china","12":"tag-chinas-national-development-and-reform-commission-ndrc","13":"tag-chinese-officials","14":"tag-communist-party","15":"tag-deflationary-pressure","16":"tag-e-commerce","17":"tag-economy","18":"tag-involution-style-competition","19":"tag-liu-wuxing","20":"tag-ministry-of-industry-and-information-technology","21":"tag-peoples-daily","22":"tag-price-wars","23":"tag-solar-power","24":"tag-state-administration-for-market-regulation","25":"tag-uk","26":"tag-united-kingdom"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@uk\/114917156236474700","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/292140","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/comments?post=292140"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/292140\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media\/292141"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media?parent=292140"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/categories?post=292140"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/tags?post=292140"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}