China strives to end vicious price wars plaguing several industries
China's market regulator has met with leading solar, automotive, and tech companies to address the issue of "involution," or cutthroat competition, that is negatively impacting these sectors. The meeting included representatives from companies like Trina Solar, JA Solar Technology, Longi Green Energy Technology, Alibaba Group, JD.com, BAIC Group, and Mercedes-Benz, who shared their concerns about unsustainable competition levels.
The companies provided suggestions on antitrust measures, fair competition reviews, and compliance guidance to combat the problem. This move reflects increasing concern from Chinese authorities about "neijuan," a cycle where companies invest heavily without proportional returns, largely due to industrial overcapacity, particularly in electric vehicles and solar energy. The Politburo and top leaders have recently emphasized the need to prevent and rectify this "involutionary competition."
via SCMP Full Text Feed
China's market regulator has met with leading solar, automotive, and tech companies to address the issue of "involution," or cutthroat competition, that is negatively impacting these sectors. The meeting included representatives from companies like Trina Solar, JA Solar Technology, Longi Green Energy Technology, Alibaba Group, JD.com, BAIC Group, and Mercedes-Benz, who shared their concerns about unsustainable competition levels.
The companies provided suggestions on antitrust measures, fair competition reviews, and compliance guidance to combat the problem. This move reflects increasing concern from Chinese authorities about "neijuan," a cycle where companies invest heavily without proportional returns, largely due to industrial overcapacity, particularly in electric vehicles and solar energy. The Politburo and top leaders have recently emphasized the need to prevent and rectify this "involutionary competition."
via SCMP Full Text Feed
