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":37811,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[36],"tags":[30841,550,28,144,30836,30840,19542,30837,8421,101,30844,30838,27676,30839,30843,5873,30842],"class_list":["post-37810","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-august-23","tag-beijing","tag-business","tag-china","tag-chinas-national-development-and-reform-commission-ndrc","tag-chinese-officials","tag-communist-party","tag-deflationary-pressure","tag-e-commerce","tag-economy","tag-involution-style-competition","tag-liu-wuxing","tag-ministry-of-industry-and-information-technology","tag-peoples-daily","tag-price-wars","tag-solar-power","tag-state-administration-for-market-regulation"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/37810","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=37810"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/37810\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/37811"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=37810"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=37810"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=37810"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}