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South China Morning Post
10 minutes ago
- Business
- South China Morning Post
China to amend key law as push to stamp out vicious price wars intensifies
China plans to amend a decades-old pricing law as part of an ongoing campaign to curb the vicious price wars plaguing several industries – a deep-rooted issue that threatens to wipe out corporate profits and fuel deflationary pressure. The amendment, which covers 10 clauses in the law, updates the definition of unfair pricing practices to include 'involution-style' competition, according to a draft released by China's National Development and Reform Commission (NDRC) and the State Administration for Market Regulation on Thursday. The term 'involution' has become a buzzword in China that refers to the excessive, cutthroat style of competition that has emerged in several industries, as companies facing weak domestic demand and oversupply problems slash prices in a bid to attract customers. The trend has become a serious concern for Beijing in recent months, with Chinese officials repeatedly vowing to stamp out the price wars and criticising companies that engage in 'disorderly' styles of competition that risk undermining economic growth. As China's economic landscape had undergone profound changes, the pricing law that originally came into effect in 1998 needed to be updated, government agencies said in a statement. 'With new economic forms and business models continuing to emerge, some industries have seen prominent cases of disorderly low-price competition, creating new demand for price regulation and oversight,' the statement said. The amendment, which is open for public comment until August 23, adds a new clause stating that businesses shall not force other operators to dump products at below-cost prices. Previously, the law only banned firms from selling goods below cost to eliminate competitors or monopolise the market.
Yahoo
a day ago
- Business
- Yahoo
China releases draft law amendment to help curb price wars
BEIJING (Reuters) -China released a draft amendment to its pricing law on Thursday as part of efforts to curb excessive competition and price wars among firms, amid persistent deflationary pressures. Chinese leaders have signaled they will rein in price wars among producers as expectations grow for a new round of factory capacity cuts in a long-awaited but challenging campaign against deflation - a move that could pose risks to economic growth. Under the proposed revisions, apart from lawful discounts on seasonal or overstocked goods, or other legitimate reasons for price cuts, firms will be prohibited from selling below cost to drive out competitors or monopolise the market, and from forcing others to adopt similar pricing practices. The draft law, published on the website of the National Development and Reform Commission (NDRC) - the state planner, also stipulates that firms cannot use data, algorithms, or technology to engage in improper pricing behaviors. The NDRC and the State Administration for Market Regulation said in a statement that China's economic landscape has changed significantly since the current pricing law was adopted in 1998. "The vast majority of goods and services prices are now formed by the market, new economic forms and business models are constantly emerging, and issues such as disorderly low-price competition in some industries have become prominent," they said. China will refine standards for identifying price collusion, price gouging, price discrimination and other unfair pricing practices, and take steps to address "involution-style" competition, the state agencies said. The draft amendment, which is open for public comment until August 23, also proposes tougher penalties for unfair pricing practices, including higher fines for violations of clear price marking requirements. China's producer prices dropped for the 33rd month in June.
Business Times
a day ago
- Business
- Business Times
China releases draft law amendment to help curb price wars
[BEIJING] China released a draft amendment to its pricing law on Thursday (Jul 24) as part of efforts to curb excessive competition and price wars among firms, amid persistent deflationary pressures. Chinese leaders have signalled they will rein in price wars among producers as expectations grow for a new round of factory capacity cuts in a long-awaited but challenging campaign against deflation – a move that could pose risks to economic growth. Under the proposed revisions, apart from lawful discounts on seasonal or overstocked goods, or other legitimate reasons for price cuts, firms will be prohibited from selling below cost to drive out competitors or monopolise the market, and from forcing others to adopt similar pricing practices. The draft law, published on the website of the National Development and Reform Commission (NDRC) – the state planner, also stipulates that firms cannot use data, algorithms, or technology to engage in improper pricing behaviours. The NDRC and the State Administration for Market Regulation said in a statement that China's economic landscape has changed significantly since the current pricing law was adopted in 1998. 'The vast majority of goods and services prices are now formed by the market, new economic forms and business models are constantly emerging, and issues such as disorderly low-price competition in some industries have become prominent,' they said. China will refine standards for identifying price collusion, price gouging, price discrimination and other unfair pricing practices, and take steps to address 'involution-style' competition, the state agencies said. The draft amendment, which is open for public comment until Aug 23, also proposes tougher penalties for unfair pricing practices, including higher fines for violations of clear price marking requirements. China's producer prices dropped for the 33rd month in June. REUTERS
India.com
3 days ago
- Business
- India.com
Big worry for India as China launches 'Water Bomb', begins construction of Brahmaputra Mega Dam, Delhi on Alert as it will…
New Delhi: China has formally started the construction of a USD 167.8 billion dam over the Brahmaputra River in Tibet, close to the Indian border in Arunachal Pradesh. Chinese Premier Li Qiang announced the start of the construction of the dam at a groundbreaking ceremony in the lower reaches of the Brahmaputra River, locally known as Yarlung Zangbo, at Nyingchi City, official media reported. According to the state-run Xinhua news agency, the ceremony took place at the dam site of Nyingchi's Mainling hydropower station in Tibet Autonomous Region. The hydropower project, regarded as the biggest infrastructure project in the world, raised concerns in the lower riparian countries, India and Bangladesh. Here are some of the key details: The project will consist of five cascade hydropower stations The project will need a total investment estimated at around 1.2 trillion Yuan (about USD 167.8 billion) According to a 2023 report, the hydropower station is expected to generate more than 300 billion kWh of electricity each year The dam is to be built at a huge gorge in the Himalayan reaches where the Brahmaputra River makes a huge U-turn to flow into Arunachal Pradesh and then to Bangladesh. It will primarily deliver electricity for external consumption while also addressing local demand in Tibet, which China officially refers to as Xizang. Representatives from various organisations, including the National Development and Reform Commission and the Power Construction Corporation of China and locals attended the ceremony, the report said. According to earlier reports, the size of the project would dwarf any other single infrastructure project on the planet, including China's own Three Gorges dam, regarded as the largest in the world. China has already operationalised the USD 1.5 billion Zam Hydropower Station, the largest in Tibet, in 2015, which raised concerns in India. Concerns Arose In India: Concerns arose in India as the dam besides empowering China to control the water flow, the size and scale of it could also enable Beijing to release large amounts of water flooding border areas in times of hostilities. India too is building a dam over Brahmaputra in Arunachal Pradesh. India and China established the Expert Level Mechanism (ELM) in 2006 to discuss various issues related to trans-border rivers under which China provides India with hydrological information on the Brahmaputra river and Sutlej river during the flood seasons. Data sharing of trans-border rivers figured in the talks between India, China Special Representatives (SRs) for border question, NSA Ajit Doval and Chinese Foreign Minister Wang Yi, held here on December 18 last year. The Brahmaputra Dam presents enormous engineering challenges as the project site is located along a tectonic plate boundary where earthquakes occur. The Tibetan plateau, regarded as the roof of the world, frequently experiences earthquakes as it is located over the tectonic plates.
India Today
5 days ago
- Business
- India Today
China begins construction of $167 billion mega dam over Brahmaputra in Tibet
China on Saturday formally started the construction of a USD 167.8 billion dam over the Brahmaputra River in Tibet, close to the Indian border in Arunachal Premier Li Qiang announced the start of the construction of the dam at a groundbreaking ceremony in the lower reaches of the Brahmaputra River, locally known as Yarlung Zangbo, at Nyingchi City, official media groundbreaking ceremony took place at the dam site of Nyingchi's Mainling hydropower station in Tibet Autonomous Region, state-run Xinhua news agency reported. The hydropower project, regarded as the biggest infrastructure project in the world, raised concerns in the lower riparian countries, India and project will consist of five cascade hydropower stations, with a total investment estimated at around 1.2 trillion Yuan (about USD 167.8 billion), the report to a 2023 report, the hydropower station is expected to generate more than 300 billion kWh of electricity each year - enough to meet the annual needs of over 300 million will primarily deliver electricity for external consumption while also addressing local demand in Tibet, which China officially refers to as Xizang. Representatives from various organisations, including the National Development and Reform Commission and the Power Construction Corporation of China and locals attended the ceremony, the report project was approved in December last dam is to be built at a huge gorge in the Himalayan reaches where the Brahmaputra River makes a huge U-turn to flow into Arunachal Pradesh and then to Bangladesh. According to earlier reports, the size of the project would dwarf any other single infrastructure project on the planet, including China's own Three Gorges dam, regarded as the largest in the has already operationalised the USD 1.5 billion Zam Hydropower Station, the largest in Tibet, in 2015, which raised concerns in arose in India as the dam, besides empowering China to control the water flow, the size and scale of it could also enable Beijing to release large amounts of water, flooding border areas in times of too, is building a dam over the Brahmaputra in Arunachal and China established the Expert Level Mechanism (ELM) in 2006 to discuss various issues related to trans-border rivers under which China provides India with hydrological information on the Brahmaputra river and Sutlej river during the flood sharing of transborder rivers figured in the talks between India, China Special Representatives (SRs) for border question, NSA Ajit Doval and Chinese Foreign Minister Wang Yi, held here on December 18 last Brahmaputra Dam presents enormous engineering challenges as the project site is located along a tectonic plate boundary where earthquakes Tibetan plateau, regarded as the roof of the world, frequently experiences earthquakes as it is located over the tectonic an official statement in December last year sought to allay concerns about earthquakes, saying that the hydropower project is safe and prioritises ecological extensive geological explorations and technical advancements, a solid foundation has been laid for the science-based, secure, and high-quality development of the project, it Brahmaputra flows across the Tibetan Plateau, carving out the deepest canyon on Earth. The dam will be built in one of the rainiest parts. - EndsTune InMust Watch
