China’s President Xi Jinping on Tuesday vowed to tighten oversight of aggressive price-cutting by domestic firms, amid growing concerns over persistent deflation.
According to state news agency Xinhua, overcapacity and price wars among Chinese manufacturers affect consumer behavior and risk deepening deflation, which could derail efforts to stabilize the economy. “Enterprises engaging in disorderly low-price competition must be regulated under laws and regulations,” said a statement from the Central Financial and Economic Affairs Commission, chaired by Xi.
The commission, a key economic policy body, also stressed the need to build a unified national market to support high-quality development.
Xi called for better coordination across sectors to strengthen economic momentum and create a more sustainable growth model.
