China’s top leadership takes aim at ‘disorderly low-price competition’
Officials have favoured a vaguer term – “involutionary competition” – but president cut to the chase at top-level economic meeting
In addressing the price wars plaguing many industries in China, the country’s top leadership has resorted to a phrase rarely seen at a high-level meeting, saying that enterprises’ “disorderly low-price competition” needs to be regulated.
Speaking at a top-level economic meeting on Tuesday, President Xi Jinping used that phrase to explicitly characterise the much-debated phenomenon, in stark contrast to officials who have, since late last year, favoured the vaguer term “involutionary competition” when discussing the problem.
China needs to “lawfully regulate enterprises’ disorderly low-price competition, guide companies to improve product quality, and promote the orderly exit of outdated production capacity”, Xi urged at a meeting of the Central Financial and Economic Affairs Commission, the Communist Party body that supervises economic matters.