Archive · 24 Jul 2025
China Drafts Law to Curb Price Wars and Excessive Competition
China is changing its pricing rules to stop companies from fighting each other with very low prices.
The government wants to stop businesses from selling things too cheaply to hurt their competitors.
They are also concerned about the use of technology in unfair pricing practices.
The new rules will make it harder to cheat with prices.
The goal is to reduce price wars and unfair competition in the market, and the government is seeking public input on the draft.
China released a draft amendment to its pricing law to curb excessive competition and price wars.
The draft prohibits selling below cost to drive out competitors or monopolize the market.
Firms cannot use data, algorithms, or technology for improper pricing behaviors.
The amendment refines standards for unfair pricing practices like collusion and gouging.
Tougher penalties, including higher fines, are proposed for violations.
- Who
- The National Development and Reform Commission (NDRC) and the State Administration for Market Regulation.
- What
- China released a draft amendment to its pricing law.
- When
- Thursday (the date is not specified in the article) and open for public comment until August 23.
- Where
- China
- Why
- To curb excessive competition and price wars among firms and address deflationary pressures.
- Law Amendment Purpose
- To curb excessive competition and price wars
- Key Prohibition
- Selling below cost to drive out competitors
- Technology Use
- Firms cannot use data, algorithms, or technology for improper pricing behaviors.
- Amendment Status
- Open for public comment until August 23
- Current Law
- Adopted in 1998