China moves to curb destructive price wars across key industries

Chinese authorities are taking fresh action to stop brutal pricing battles playing out across major ￰0￱ say selling goods below cost is damaging business health and hurting the broader ￰1￱ National Development and Reform Commission and the State Administration for Market Regulation put out a joint statement Thursday night about what they’re calling disorderly price ￰2￱ agencies warned that too much price warfare could lead to a situation where “bad money drives out good money.” Price competition has its place in markets, but some Chinese industries have pushed things too far, regulators said. They’re ramping up cost investigations, tightening price monitoring, and going after companies that break the ￰3￱ that keep up illegal pricing after getting formal warnings could see additional penalties or face closer ￰4￱ statement pushed companies to set prices fairly and legally based on what the market actually needs as per ￰5￱ pointed out that current rules already stop businesses from bidding below their costs when they’re competing for contracts and other procurement ￰6￱ delivery giants agree while EV sector resists Food delivery services saw some of the most intense price battles this ￰7￱ Group Holding Ltd., Meituan, and ￰8￱ ￰9￱ went big on aggressive discounts and special offers to pull in ￰10￱ State Administration for Market Regulation brought in executives from these three companies in ￰11￱ agreed to ease up on those ￰12￱ Cryptoplitan noted previously, the e-commerce price wars have hammered profit margins across the ￰13￱ are raising red flags about long-term ￰14￱ electric vehicle sector?

That’s been a tougher nut to ￰15￱ repeated calls to stop the deep discounting, EV manufacturers keep rolling out heavy promotions in their cutthroat ￰16￱ leaders have pledged to tackle what they call “involution”, basically destructive competition driven by way too much production ￰17￱ forces businesses into endless price cuts that deliver fewer and fewer ￰18￱ July saw the Communist Party’s Politburo commit to better managing overcapacity in key industries to fight ￰19￱ numbers show the government’s campaign isn’t getting much ￰20￱ July, every single one of China’s top 20 car brands either kept their discounts the same, bumped them up, or made tiny ￰21￱ brands actually went deeper on discounts even after Beijing made that June appeal to avoid “rat-race competition,” China Auto Market data ￰22￱ levels last month beat the year-earlier ￰23￱ weak response shows just how hard it’ll be to control what’s happening in such a competitive ￰24￱ players like BYD ￰25￱ Tesla ￰26￱ dealing with challenges from new competitors like tech company Xiaomi Corp.

Meanwhile, automakers including Nio ￰27￱ Xpeng ￰28￱ launching new models to grab market ￰29￱ maintains deep discounts despite scrutiny Take BYD, China’s top-selling ￰30￱ major discounts in late May helped set off the government scrutiny in the first ￰31￱ the change was ￰32￱ average discount – that’s the gap between the final sale price and the suggested retail price – dropped just slightly to 7.5% in July from 7.9% in ￰33￱ have warned BYD and other automakers over and over about how unsustainable the ongoing price wars ￰34￱ don’t seem willing to back down ￰35￱ fact that discounting continues despite regulatory warnings suggests companies figure they’ve got no choice but to compete on ￰36￱ consumer demand and excess manufacturing capacity leave them few ￰37￱ broader hit on renewable energy and technology sectors shows how far the pricing pressure has spread across Chinese ￰38￱ Bybit now and claim a $50 bonus in minutes