US EditionChina Communist Party magazine calls for crackdown on price wars
CHINA, JUL 1 – China's leadership targets aggressive price wars and unfair practices to protect profits and economic stability amid deflation and industry overcapacity, officials said.
- On Tuesday, the Chinese Communist Party’s publication Qiushi urged efforts to curb competitive practices that lead to destructive price-cutting and reduce profit margins across multiple sectors in China.
- This crackdown targets the intense competitive behavior where companies and regional authorities allocate substantial resources to capture market share despite stagnant demand and disappointing revenue growth.
- Qiushi highlighted risks in industries including solar power, rechargeable batteries, electric automobiles, and online retail, pointing to issues such as excessive production capacity, declining product standards, and flawed bankruptcy systems.
- The article cautioned that intense price competition leads to significant inefficiencies and accumulating debt, which may jeopardize China's sustained economic development, emphasizing that addressing this issue is a complex and gradual process.
- The publication and economists noted that China needs supply-side reforms and a domestic demand expansion strategy, but local governments may resist due to job loss fears, indicating challenges ahead for economic adjustment.
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·United States
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China Communist Party magazine calls for crackdown on price wars
A prominent Chinese Communist Party publication called for a crackdown on competition that fuels price wars and squeezes profits in various industries, criticising large companies and local governments for unfair practices.
·United Kingdom
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Competition between automotive manufacturers is heating up with the increasing practice of price wars, especially from manufacturers from China.
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Total News Sources24
Leaning Left6Leaning Right1Center11Last UpdatedBias Distribution61% Center
Bias Distribution
- 61% of the sources are Center
61% Center
L 33%
C 61%
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