Chinese President Xi Jinping announced on Tuesday a commitment to enhance the regulation of aggressive price undercutting by domestic companies. This move comes amidst increasing worries over persistent deflationary pressures. As reported by the state news agency Xinhua, issues such as overcapacity and price wars among Chinese manufacturers are impacting consumer behavior and posing a threat to economic stability, potentially exacerbating deflation and undermining economic recovery efforts.
In a statement released by the Central Financial and Economic Affairs Commission, chaired by Xi, it was emphasized that enterprises engaging in disorderly low-price competition will face regulation in accordance with legal frameworks. This commission, a principal entity in economic policymaking, underscored the importance of establishing a unified national market as a foundation for high-quality development.
President Xi emphasized the necessity for improved coordination across different sectors to bolster economic momentum and pave the way for a more sustainable growth model.
