China's market regulator vows to tackle 'involution-style' competition with standards, pricing, quality tools
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At a State Council Information Office press conference on September 20, officials from China's State Administration for Market Regulation (SAMR) outlined plans to optimize business entity management as part of the 'Starting the 15th Five-Year Plan' series. The SAMR will reduce institutional transaction costs by reforming the subscribed capital registration system and simplifying administrative procedures for market entry. Concurrently, it will streamline exit channels to facilitate the orderly withdrawal of inactive enterprises, ensuring dynamic market turnover. To address 'involution-style' competition, the regulator will use tools including standards guidance, price enforcement, and quality supervision to steer businesses away from destructive low-price wars toward quality and efficiency improvements. The SAMR also pledged to strengthen anti-monopoly and anti-unfair competition enforcement, enhance merger control reviews, and intensify oversight of platform companies regarding data, algorithms, and traffic allocation, reinforcing their 'gatekeeper' responsibilities to promote innovation and healthy development in the platform economy.
Source report
Jin10 Data, September 20 — During a press conference held by the State Council Information Office as part of the "Starting the 15th Five-Year Plan" series, officials from the State Administration for Market Regulation (SAMR) announced a series of measures aimed at improving the business environment and market regulation.
Market Entry and Registration Reforms
The SAMR stated it will:
- Optimize entry management for business entities
- Promote improvements to foundational and general legal systems for registration management
- Deepen reforms to the subscribed capital registration system
- Further reduce institutional transaction costs
- Make it more convenient for enterprises and entrepreneurs to enter the market and handle administrative matters with less hassle
Streamlined Market Exit Channels
The administration will also streamline exit channels for the market, facilitating the orderly and stable withdrawal of long-inactive or ceased-operation enterprises and individual businesses. This is intended to ensure dynamic market turnover and renewal.
Curbing "Involutionary" Competition
The SAMR will comprehensively employ tools such as:
- Standards guidance
- Price enforcement
- Quality supervision
These measures aim to rectify "involutionary" competition, guiding business entities to focus on improving quality and efficiency rather than engaging in destructive low-price wars.
Strengthened Anti-Monopoly Enforcement
Efforts will be strengthened to enforce anti-monopoly and anti-unfair competition laws. The SAMR will enhance technical capabilities for monitoring and early warning of monopoly risks, and improve the quality and efficiency of merger control reviews.
Platform Economy Oversight
In particular, regarding platform companies, the SAMR will intensify supervision over:
- Data
- Algorithms
- Traffic allocation
- Rules
The administration will reinforce platforms' responsibilities as "gatekeepers," promoting innovation and healthy development in the platform economy.
(Source: CCTV News)
Source
金十数据Eastern
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China’s market regulator vows to curb ‘involutionary’ competition and ease market exit by 2030