BYD dropped prices on electric vehicles and competitors followed suit

‘Irregular Competition’

After rejecting these concerns about excessive capacity in homes and other sectors for years, China’s leadership is decreasing.

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“The Chinese government knows that excessive capacity cannot deny or ignore it, Dr says Dr. Bo Chen, a senior research assistant at the East Asian Institute of Singapore National University, says.

However, the language of the critics escaped in favor of “irregular competition” and “invasic”, which means the same thing as the same thing as the excessive capacity, a competition spiral that usually leads to self-esteem to chase decreasing returns at the expense of excessive processing of its employees.

“This distinction is important because Chinese policy makers avoid the acceptance of systemic excessive production, allowing Chinese policy makers to deal with the underlying problem,” he writes, “This distinction is important,” he says. Channel News Asia.

For the Chinese system, which is meticulous in maintaining social control, chaotic competition, which directs a race to the bottom, carries an unacceptable risk to inflammation of the country’s deflationist spiral and trigger social unrest and unemployment.

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Last month, there are a number of signals that the problem is now an important priority. In July, Politburo, the highest policy -making organ of the Chinese Communist Party, announced that it will be restrained by “irregular competition” among businesses.

Separately, the Chinese state media carried reports of President Xi Jinping to invest in the necessity of investing local governments in artificial intelligence, home and information processing sectors and calling to kr break the invasic cycle ”.

“Should every state in the country develop industries in these areas?” XI was given to a urban development conference. People’s DailyCCP’s official mouthpiece.

China’s best economic planning body also introduced the proposed changes in pricing laws to prohibit sales under cost to delete competitors or monopolize the market.

Chen argues that the difficulties in the home and solar panel industry with serious excessive capacity are not guided by China’s industrial policy and extreme investment, as in other state -substituated industries such as coal and steel. Heavy tariffs from the EU and the USA and other protectionist measures have also created problems of demand.

However, the last point is the same, he says Chen and consolidation are inevitable.

“For these industries, or not, for real solar panels and home industries, both of which are encountered with a very gloomy demand in front of them, Chen said Chen.

This is not only the government’s home industry targeted by the government’s anti -campaign anti -campaign. China’s food distribution platforms were called by the state market regulator last month and warned to cool down in throat pricing strategies to win customers.

This week, while promised to target the “invasic style” competition in the financial industry of China’s Central Bank, the state media carried a report that criticized the banking sector for participating in aggressive competitive practices.

“Some small and medium -sized loans offered shopping cards, cash coupons and even dining oil to attract deposit holders,” China Daily Reported this week.

Many analysts continue to be skeptical that decisions at this level will turn into an important action or investment priorities by local governments due to increasing unemployment when businesses fail. However, “Free Gifts” for the wild west days of ultra bars, ridiculous promotions and sales are probably borrowed.