China’s regulators must act quickly to stamp out price wars: People’s Daily

China’s Communist Party mouthpiece has run an editorial arguing that regulators must act decisively to prevent the spread of vicious “neijuan-style” competition in the economy, as a frenzied battle for control of the country’s vast food delivery sector stirs controversy.

Though these incentives can provide short-term benefits to consumers, the state-run People’s Daily warned on Monday that such neijuan-style tactics ultimately harm a market’s long-term development by squeezing profits and creating instability across the supply chain.

“To strike a balance between market forces and government oversight, regulators need to step in decisively when necessary,” the article stated.

“Regulators stepping in to restore fair competition is not about preventing rivalries, but guiding platforms away from destructive price wars so they pursue innovation, focus on product differentiation, and return to healthy, value-driven competition – the key to high-quality industry growth.”