Core Viewpoint - The introduction of low-priced baguettes at €0.29 by major supermarket chains in France has sparked outrage among traditional bakers, who argue that this practice undermines the artisanal baking industry and disrupts the pricing structure of baguettes [1][2]. Industry Impact - Major supermarket chains, such as Auchan and Lidl, have launched €0.29 baguettes, which has angered traditional bakers [1]. - The average price of a baguette in traditional bakeries is €1.09, highlighting a significant price disparity due to the artisanal production process [1]. - Traditional bakers claim that the labor costs associated with handmade baguettes account for over 40% of total costs, as the production process is time-consuming and labor-intensive [1]. Production Methods - Supermarkets utilize automated production methods, allowing them to produce baguettes at a much lower cost and higher volume, with the ability to create 10,000 baguettes per hour compared to 400-600 by a traditional baker [1][2]. - The use of pre-made semi-finished products and bulk purchasing helps supermarkets control costs and maintain lower prices [2]. Market Dynamics - Despite the rise of low-cost baguettes, traditional bakeries still dominate the market, with supermarket baguette sales accounting for only 9% of the total market [2]. - The annual production of baguettes in France reaches 6 billion, indicating the product's cultural significance and popularity among the French [2]. - Changes in consumer habits and rising raw material costs are influencing the traditional French baking industry [2].

Group 1: Economic Context - The revision of the Price Law is the first major overhaul in 27 years, addressing the "increase in production without an increase in profit" dilemma and inward competition[4] - China's Producer Price Index (PPI) has experienced negative growth for 33 consecutive months, with a year-on-year decline of 3.6% in June 2025, marking a new low in this negative growth cycle[5][6] - Industrial value-added increased by 6.4% year-on-year in the first half of 2025, yet industrial profits fell by 1.8% year-on-year, highlighting the paradox of "increased production without increased profits"[5] Group 2: Legislative Changes - The Price Law revision expands the definition of "below-cost pricing" to include digital economy practices, enhancing the legal framework against unfair competition[5][13] - The revision raises the maximum penalty for violations from 5,000 yuan to 50,000 yuan, significantly increasing the deterrent effect on large enterprises[15] - New provisions specifically target algorithmic manipulation and hidden fees in the digital economy, marking a significant regulatory advancement[15] Group 3: Market Implications - The revision is expected to accelerate industry differentiation, pushing out non-compliant capacities and enhancing the competitive environment for compliant firms[16] - The anticipated recovery of PPI and profit margins may lead to a shift in capital market dynamics, with funds reallocating from defensive sectors to cyclical and "anti-involution" sectors[18] - The long-term goal of the Price Law revision is to transition the economy from a "price war" to an "innovation-driven" growth model, fostering sustainable economic development[18]

Core Viewpoint - The National Development and Reform Commission (NDRC) is accelerating the revision of the pricing law, focusing on regulating unfair pricing behaviors such as low-cost dumping to eliminate competition and monopolize the market [1] Group 1: Regulatory Changes - The draft revision of the pricing law will clarify the standards for identifying unfair pricing behaviors, particularly low-cost dumping below production costs [1] - The NDRC will include services in the scope of low-cost dumping regulations, expanding the reach of the new pricing law [1] Group 2: Market Impact - The NDRC aims to comprehensively address chaotic low-price competition behaviors, establishing clear governance measures to guide companies towards scientific and rational pricing [1] - The initiative is expected to effectively regulate market pricing order and promote orderly competition within industries [1]

Core Viewpoint - The recent meeting by the State Post Bureau aims to address the "involution" competition in the express delivery industry, indicating a shift in the competitive landscape following the acquisition of Cainiao Express by Shentong [1] Group 1: Industry Dynamics - The express delivery sector is experiencing a wave of stock price increases amid a crackdown on "involution" competition, with companies like Yunda, Shentong, and Jitu benefiting from this trend [5] - The "involution" competition has led to many express companies offering services below cost to capture market share, resulting in significant pressure on profit margins for both headquarters and franchisees [3][5] - Recent price adjustments in grain-producing areas signal a clear intention to stabilize market prices, with increases ranging from a few cents to several dimes [1] Group 2: Regulatory Changes - The recent revision of the Price Law targets predatory pricing practices, defining low-cost dumping aimed at eliminating competitors as illegal [3] - The new Anti-Unfair Competition Law, effective from October 15, introduces specific regulations against "involution" competition, prohibiting platforms from forcing sellers to price below cost [3][5] - These legal changes are expected to create a synergistic effect in regulating "involution" competition and chaotic low-price dumping across various market levels [3] Group 3: Market Outlook - The current strategy of "price for volume" is showing diminishing returns, with further price cuts unlikely to stimulate demand and instead harming profitability [5] - The upcoming traditional peak season in Q4 is anticipated to improve pricing stability and enhance profit margins for express delivery companies [5] - The express delivery sector has seen collective stock price increases recently, with Jitu rising over 50% and Shentong over 40% in the past month, indicating potential valuation recovery [5]

Key Points - The National Development and Reform Commission and the State Administration for Market Regulation have released a draft amendment to the Price Law for public consultation, marking the first revision since its implementation in 1998 [1] - The revision aims to address social concerns and is timely, focusing on three main highlights [1] Highlight 1: Addressing "Involution" Competition - The amendment clarifies the standards for identifying unfair pricing behaviors, particularly enhancing the criteria for recognizing predatory pricing. The scope of predatory pricing has been expanded to include both goods and services, and the focus is on whether there is intent to disrupt competition or monopolize the market [2] Highlight 2: Targeting "Big Data Price Discrimination" - The draft includes provisions that prohibit operators from using data, algorithms, and technology to engage in unfair pricing practices. This addresses the growing issue of "big data price discrimination," where consumers face different prices for the same product based on their browsing history or device used [2] Highlight 3: Increased Penalties for Pricing Violations - The proposed changes increase the penalties for violations of pricing regulations, raising the maximum fines for serious offenses. This aims to deter operators from engaging in price violations and to maintain market order [3]

Core Viewpoint - The article discusses the upcoming legal support for comprehensive regulation against "involutionary" and disorderly competition in the market through the revision of the Price Law in China [2][3]. Group 1: Legal Framework and Revisions - The National Development and Reform Commission and the State Administration for Market Regulation have drafted the "Draft Amendment to the Price Law of the People's Republic of China" to solicit public opinions from July 24 to August 23, 2025 [2]. - This is the first amendment since the Price Law was implemented in 1998, introducing several provisions related to combating "involution" and improving regulations on unfair pricing behaviors such as predatory pricing, price gouging, price collusion, and price discrimination [2][5]. - The revised Price Law aims to work in conjunction with the Anti-Monopoly Law and the Anti-Unfair Competition Law to create a more comprehensive market regulatory system [2][13]. Group 2: Addressing Unfair Pricing Practices - The amendment includes ten articles focusing on three main areas: improving government pricing regulations, clarifying standards for identifying unfair pricing behaviors, and enhancing legal responsibilities for pricing violations [5][6]. - The revision of the low-price dumping clause expands its applicability beyond goods to include services, addressing issues in the platform economy and service consumption [7][8]. - The amendment specifies that operators must not engage in unfair pricing behaviors using data, algorithms, or technology, and prohibits dominant operators from imposing unreasonable fees or conditions [11][12]. Group 3: Impact on Market Competition - The revised Price Law is expected to provide strong legal support for regulating low-price dumping, which is seen as a harmful form of "involution" that can lead to reduced profits and increased pressure on businesses [9][10]. - The amendment aims to create a fairer competitive environment, enhancing the attractiveness and influence of China's unified market amid increasing international uncertainties [2][4].

Core Points - The revised Price Law aims to strengthen legal support for regulating unfair pricing behaviors and enhancing market competition, particularly addressing issues related to "involution" [1][2][3] - The draft includes new provisions for digital economy regulation, targeting algorithm pricing and data discrimination, thus filling existing regulatory gaps [1][6] - The revision is a response to the changing economic landscape, where most prices are market-driven, and new business models have emerged, necessitating updated regulatory measures [3][4] Group 1: Legal Framework Enhancements - The draft introduces multiple provisions related to "anti-involution," improving regulations on unfair pricing behaviors such as predatory pricing, price collusion, and price discrimination [1][3] - It establishes clearer standards for identifying unfair pricing practices and enhances legal responsibilities for violations, thereby providing robust support for price regulation [3][5] - The revised law will work in conjunction with the Anti-Monopoly Law and the Anti-Unfair Competition Law to create a comprehensive market regulation system [7] Group 2: Addressing Low-Cost Dumping - The current Price Law's application to low-cost dumping is limited to goods sold by operators, which does not fully address the rise of platform economies and service consumption [4] - The draft revises the definition of low-cost dumping to include actions that aim to eliminate competitors or monopolize the market by selling below cost [4][5] - It also identifies specific practices in service sectors that constitute disguised price increases or reductions, responding to recent market trends [4][5] Group 3: Digital Economy Regulation - The draft explicitly prohibits operators from engaging in unfair pricing behaviors using data, algorithms, and technology [6] - It bans dominant operators from imposing unreasonable fees or conditions, addressing the misuse of data and algorithms in the digital economy [6] - The revised law aims to regulate new challenges posed by rapid advancements in technology, such as algorithm discrimination and data exploitation [6]

Group 1 - The European Union has approved a countermeasure plan to impose tariffs on US products totaling €93 billion, following a previous vote on a list worth approximately €72 billion, primarily targeting high-value industrial products such as aircraft, automobiles, and electrical equipment [2] - The Chinese government is expanding the provision of first loans and credit loans to support small farmers, aiming to enhance their self-development capabilities and increase income channels [5] - The Chinese Ministry of Commerce has adopted a zero-tolerance policy towards the smuggling of strategic minerals, emphasizing a strong crackdown on illegal export cases [6] Group 2 - The National Medical Insurance Bureau of China reported that during the "14th Five-Year Plan" period, the cumulative expenditure of the medical insurance fund exceeded ¥12.13 trillion, with an annual growth rate of 9.1% [7] - The Shanghai Pudong government is promoting the synchronized research, clinical trials, application, and market launch of imported innovative drugs, aiming to facilitate the landing of globally first-launched products [12] - In Guangdong, financial policies have been implemented to support foreign trade enterprises, with nearly ¥10 billion in non-repayable renewals processed in the first half of the year [13] Group 3 - In the first half of the year, nine provinces in central and western China led the growth in import and export rates, with Qinghai achieving a remarkable increase of 57.7% [14] - Amazon has announced a personnel reduction in some teams within its cloud technology division, citing a thorough evaluation of the company's organizational and strategic direction [24] - Tesla reported a decline in both revenue and net profit for the second quarter of 2025, with revenue at $22.5 billion, a 12% year-on-year decrease, and net profit at $1.172 billion, down 16% [24]

Group 1 - The revision of the Price Law is necessary and urgent to respond to the increasing demands for fairness, transparency, and justice in market activities, particularly in the context of unfair pricing behaviors like low-price dumping [2][3] - The government plays a crucial role in regulating pricing behaviors, especially in cases of market failure, such as low-price dumping, which disrupts normal business operations and harms the interests of other operators [3][4] - Strengthening the legal framework of the Price Law is essential for promoting high-quality economic development and ensuring that market prices accurately reflect supply and demand signals [4][5] Group 2 - Establishing a robust price regulation system is vital to curb unfair pricing practices, ensuring that pricing reflects market conditions and production costs [5][6] - The revision of the Price Law includes clearer definitions of unfair pricing behaviors, particularly low-price dumping, which is now explicitly categorized as an unfair pricing practice [5][6] - Promoting self-discipline and integrity among operators is crucial for maintaining fair competition, with the Price Law emphasizing the importance of honesty and trustworthiness in pricing activities [6][7]

Core Viewpoint - China is revising its price law framework, which has been in place for 27 years, to curb destructive low-price competition and establish new market rules for the digital economy [1] Group 1: Legislative Changes - The National Development and Reform Commission and the State Administration for Market Regulation have drafted the "Draft Amendment to the Price Law of the People's Republic of China" and are seeking public opinion, marking a critical stage in this legislative process [1] - This amendment is the first since the law was implemented in 1998 and was officially included in the legislative plan of the 14th National People's Congress in 2023 [1] Group 2: Addressing "Involution" Competition - A key focus of the amendment is to provide clearer legal tools to combat "involution" competition, particularly targeting predatory pricing practices [2] - The current price law's provisions on predatory pricing are complex and limited to goods and operators, making it inadequate for the rise of platform economies and service consumption [2] - The revised draft clarifies the two core elements of predatory pricing: the means (pricing below cost) and the purpose (eliminating competitors or monopolizing the market) [2] Group 3: Expanding Scope and Regulatory Framework - The scope of predatory pricing is expanded from "goods" to include "goods and services," and the regulatory subjects are broadened to include third parties that set pricing rules, such as platforms [3] - New provisions prohibit operators from engaging in unfair pricing practices using data, algorithms, and technology, addressing the changes in business models in the digital economy [4] Group 4: Comprehensive Regulatory System - The amendment is part of a broader effort to enhance the market economy's legal framework, requiring multiple laws to work together to address chaotic low-price competition [6] - The revised price law will collaborate with the newly amended Anti-Unfair Competition Law and Anti-Monopoly Law to form a comprehensive legal regulatory system [6] - The draft increases penalties for violations of pricing regulations and clarifies legal responsibilities for providing false cost information [6]