China’s top leadership has committed to curbing aggressive pricing strategies among businesses, signalling a renewed push to establish a unified national market. This initiative aims to stimulate domestic demand amid rising global trade tensions and concerns about deflationary pressures weighing on the economy.
According to Xinhua, officials at a high-level economic meeting, led by President Xi Jinping, announced plans to crack down on “disorderly” low-price competition and eliminate outdated industrial capacity. For years, Beijing has been working to remove local protectionist barriers in an attempt to spur consumption and bolster domestic demand.
The focus on curbing excessive competition and overcapacity indicates concerns among top leaders regarding deflationary pressures. To achieve a more integrated and efficient domestic market, China intends to standardise rules and infrastructure, align government practices, and unify markets for labour, land, capital, and other essential inputs.
Furthermore, officials have called for the regulation of local investment promotion activities and enhanced disclosure of pertinent information. The fiscal system will undergo improvements to support this overarching objective of unifying the market and stabilising the economy.
