Photo shows the nameplate of National Anti-monopoly Bureau, which is in the same building of the State Administration for Market Regulation in Beijing. Photo: CFP

During the 15th Five-Year Plan (2026-30) period, Chinese market regulators will use standards, price enforcement and quality supervision to curb "involution-style" competition on the market, while tighten anti-trust and anti-unfair-competition enforcement, said Shu Wei, spokesperson and Vice Minister of the State Administration for Market Regulation, China's top market regulator.

"Rather than burning themselves out in a race to the bottom in a fierce price-cutting competition (to gain market share), we will steer companies toward raising quality and efficiency," Shu said. 

According to him, the authorities will take the lead in conducting cost investigations and price inspections of firms that engage in malicious low-price competition and disrupt the order of production and business, and will "deal with them strictly in accordance with the law." The comments were made at a press briefing of the State Council Information Office on advancing high-quality development of market regulation during the 15th Five-Year Plan (2026-30) period on Sunday.

Chinese regulators will also push for implementing rules on pricing conduct on internet platforms, keep regulating price competition on e-commerce  platforms, study and issue interim provisions on a price-supervisor system, and press companies to take primary responsibilities for price compliance.

Work on revising the Price Law will be accelerated during the 15th Five-Year Plan (2026-30) period, and rules on stopping sales at unreasonably low prices will be studied and drafted. Relevant industry associations will be guided to set cost-calculation standards, so as to put in place a "1+1+N" legal framework against predatory price-gouging, Shu noted. 

In terms of anti-trust and anti-unfair competition enforcement, Shu said that Chinese regulators will make use of modern technology to monitor market operation and warn of monopolization activities, and raise the quality and efficiency of business acquisition and merger reviews.

"As for the online platform companies, oversight of data, algorithms, traffic and platform rules will be strengthened,  and the platforms will be required to better fulfill their 'gatekeeper' responsibilities, while promoting the healthy growth of the so-called platform economy," Shu stressed. 

Chinese market regulators will improve market-access administration, refine the basic and generally applicable legal rules on registration, deepen reform of the registered-capital subscription system, and further cut institutional transaction costs, so that companies and entrepreneurs find it "easier to enter the market and less burdensome to get things done," Shu said.

Global Times