Core Viewpoint - The recent government procurement policy changes in China signify a move towards deeper institutionalization and standardization of the procurement system, emphasizing the implementation of domestic product standards and related policies [1][4]. Group 1: Policy Implementation - The State Council meeting on September 19 highlighted the importance of establishing domestic product standards in government procurement as a key measure to improve the procurement system and ensure fair treatment for foreign enterprises [1][4]. - The Ministry of Finance plans to solicit public opinions on the draft notice regarding domestic product standards and implementation policies in government procurement by December 2024 [3]. Group 2: Market Impact - The new policies are expected to have a profound impact on the government procurement market, which exceeds 3 trillion yuan, having grown from 100.9 billion yuan in 2002 to 3.6399 trillion yuan in 2021, increasing its share of fiscal expenditure from 4.6% to 10.1% [5]. - In 2023, the national government procurement scale was reported at 3.39296 trillion yuan, indicating a slight decline in recent years [6]. Group 3: Classification and Transition - The meeting proposed a reasonable classification approach to set domestic product standards, suggesting that specific requirements for key components and processes will be established based on industry characteristics rather than a one-size-fits-all domestic production ratio [6]. - The policy emphasizes a reasonable transition period to support enterprises in preparing for industrial layout and investment plans, with different industries potentially receiving varying adjustment times [7][8]. Group 4: Fair Competition - The policy aims to ensure equal treatment for all types of enterprises, including state-owned, private, and foreign companies, as long as they meet the domestic product standards, aligning with the ongoing reforms to optimize the business environment in China [8]. - The establishment of clear domestic product standards is seen as a prerequisite for fair treatment of foreign enterprises, ensuring that all products produced within China are treated equally [8]. Group 5: International Context - The new government procurement policy reflects a significant step in China's reform and opening-up process, balancing national economic security with a commitment to expanding openness, similar to practices in developed countries like the U.S., Japan, and the EU [8]. Group 6: Future Outlook - With the implementation of these policies, the government procurement market is expected to become more standardized, transparent, and open [9].

Core Viewpoint - The article emphasizes the need for a multi-faceted approach to address "involutionary" competition, advocating for a collaborative market environment that combines an effective market with proactive government intervention [1][2][3]. Group 1: Issues in the Low Altitude Economy - The recent action by the Beijing Civil Affairs Bureau to dismantle the "China Low Altitude Economy Alliance" is seen as a significant step towards regulating the low altitude industry and addressing "involutionary" competition [1]. - The low altitude economy is identified as a strategic emerging industry that has attracted considerable capital interest, but has also been subject to exploitation by organizations misrepresenting themselves as industry associations [1]. - The article highlights that many industries, including both emerging sectors like photovoltaics and traditional sectors like coking and landscaping, have faced similar issues of excessive competition and resource waste [1]. Group 2: Root Causes of Involutionary Competition - The persistence of "involutionary" competition is linked to resource misallocation and distorted market mechanisms, where companies focus on short-term gains through price wars rather than improving product quality [2]. - Local governments that create "policy depressions" without considering local industry foundations contribute to homogenized industry layouts and resource wastage [2]. - The inadequacy of market mechanisms fosters an environment conducive to "involutionary" competition, which can stifle innovation and sustainable development in industries [2]. Group 3: Strategies for Governance - To effectively govern "involutionary" competition, a combination of strategies is necessary, focusing on creating a synergistic market environment through unified national market construction and regulatory recognition [2][3]. - Improving the business environment requires reducing costs while increasing value, encouraging businesses to shift from price wars to innovation-driven growth [3]. - The governance approach has evolved from merely preventing "involutionary" competition to implementing systematic and legal measures to regulate low-price disorderly competition [3].

Core Points - Zhengzhou Market Supervision Administration conducted an administrative interview with Ctrip Travel Network, requiring comprehensive rectification and standardized operations to maintain fair competition and protect the legitimate rights of platform operators [1][5] - The platform was found to have violated the Electronic Commerce Law and the Interim Provisions on the Prohibition of Unfair Competition by using service agreements, transaction rules, and technical means to impose unreasonable restrictions on transactions and pricing of platform operators [1][5] - A corrective notice was issued on September 4, 2025, mandating Ctrip to complete contract revisions and pricing tool optimizations within a specified timeframe [1][5] Regulatory Emphasis - Fair competition is emphasized as the core of the market economy, with internet platform companies urged to enhance legal awareness and actively cooperate with regulatory authorities [2] - Companies are required to establish a regular legal education mechanism to improve compliance capabilities among management and operational staff [2] - The importance of respecting merchants' autonomy and correcting unreasonable restrictions, such as forced service activation and inability to exit, is highlighted [2] Follow-up Actions - Zhengzhou Market Supervision Administration will continue to monitor Ctrip's rectification progress and conduct inspections to ensure compliance with responsibilities [2]

Group 1 - The Zhengzhou Market Supervision Administration conducted an administrative interview with Ctrip Travel Network on September 17, 2023, due to violations of the E-commerce Law and regulations against unfair competition [1] - Ctrip was found to impose unreasonable restrictions on transaction and pricing of platform operators through service agreements, trading rules, and technical means [1] - A corrective notice was issued to Ctrip on September 4, 2025, requiring the company to complete necessary adjustments and establish a long-term compliance mechanism [1] Group 2 - The meeting emphasized that fair competition is the core of a market economy, urging internet platform companies to enhance legal awareness and actively cooperate with regulatory authorities [2] - Companies are required to correct unreasonable restrictions, respect merchants' autonomy, and address issues such as "forced activation" and inability to exit [2] - The need to protect the legitimate rights of platform operators and prohibit the use of technical means to manipulate prices or restrict transactions was highlighted [2]

Core Viewpoint - Ctrip has been summoned for an administrative interview by the Zhengzhou Market Supervision Administration due to complaints from multiple hotels regarding the platform's interference in hotel pricing through a tool called "Price Adjustment Assistant" [1][3] Group 1: Issues Raised - Multiple hotels reported that Ctrip unilaterally modified their room prices on the platform without consent, using the "Price Adjustment Assistant" tool [2] - Hotel managers indicated that Ctrip monitors pricing on other platforms and automatically lowers prices on Ctrip if discrepancies are found, often without notifying the hotels [2] - Instances were reported where Ctrip's adjustments led to significant price reductions, affecting hotel revenues, especially during peak periods [2] Group 2: Regulatory Actions - Ctrip's actions were found to violate the Electronic Commerce Law of the People's Republic of China and related regulations, prompting the Zhengzhou Market Supervision Administration to issue a correction notice [3] - The administrative interview emphasized the need for Ctrip to revise contract terms, optimize pricing tools, and establish a long-term compliance mechanism to prevent similar issues in the future [3] - Regulatory authorities outlined three key requirements for Ctrip: enhancing legal awareness, correcting unreasonable restrictions, and ensuring the protection of merchants' pricing autonomy [3]

Core Viewpoint - The Zhengzhou Market Supervision Administration has conducted an administrative interview with Ctrip Travel Network due to violations of e-commerce laws, specifically regarding unreasonable restrictions on platform operators' transactions and pricing [3][4]. Regulatory Actions - Ctrip was found to have violated Article 35 of the E-commerce Law of the People's Republic of China and Article 24 of the Interim Provisions on the Prohibition of Unfair Competition in the Network by using service agreements and technical means to impose unreasonable restrictions on transaction prices [3][4]. - The Zhengzhou Market Supervision Administration issued a "Notice of Correction" on September 4, 2025, requiring Ctrip to rectify its practices and ensure compliance with market regulations [3][4]. Compliance Requirements - Ctrip is required to revise contract terms and optimize pricing tools within a specified timeframe, establish a long-term compliance mechanism, and enhance internal supervision to prevent similar issues in the future [4]. - The administration emphasized the importance of fair competition and urged internet platform companies to strengthen their legal awareness and actively cooperate with regulatory authorities [4]. Complaints and Investigations - Multiple hotels have complained about Ctrip's "Price Adjustment Assistant" feature, which was allegedly activated without permission, automatically scanning competitor prices and forcing price reductions [5]. - The Zhengzhou Market Supervision Administration initiated an investigation into the "Price Adjustment Assistant" in July, following complaints from hotel operators regarding forced participation in discount activities [5]. Financial Performance - In Q2 2025, Ctrip reported revenue of 14.8 billion RMB, a year-on-year increase of 16%, and a net profit of 4.8 billion RMB, up 26% from the previous year [6]. - Ctrip's financial services, including consumer loans and supply chain finance, have shown significant growth, with Ctrip Small Loan's net profit increasing by 132.58% in the first half of 2025, reaching 4.429 million RMB [6].

Core Viewpoint - The Zhengzhou Market Supervision Administration has conducted an administrative interview with Ctrip Travel Network for violating e-commerce laws and regulations, emphasizing the need for the company to rectify its practices to ensure fair competition and protect the rights of platform operators [1][4]. Group 1: Regulatory Actions - The Zhengzhou Market Supervision Administration found that Ctrip violated Article 35 of the E-commerce Law of the People's Republic of China and Article 24 of the Interim Provisions on Prohibition of Unfair Competition in the Internet, by unreasonably restricting transactions and pricing of platform operators [1][4]. - A corrective notice was issued to Ctrip on September 4, 2025, mandating the company to address these issues [1][4]. Group 2: Compliance Requirements - Ctrip is required to take the administrative interview seriously and complete the necessary rectifications within the specified timeframe, including revising contract terms and optimizing pricing tools [4][5]. - The company must establish a long-term compliance mechanism, enhance internal supervision, and ensure that similar issues do not recur [4][5]. Group 3: Fair Competition Emphasis - The meeting highlighted that fair competition is central to a market economy, urging internet platform companies to strengthen their legal awareness and actively cooperate with regulatory authorities [5]. - Ctrip is expected to correct unreasonable restrictions, respect merchants' autonomy, and address issues such as "mandatory activation and inability to exit" [5]. - The Zhengzhou Market Supervision Administration will continue to monitor the progress of rectifications and conduct inspections to ensure compliance with market order [5].

Core Viewpoint - The article discusses the administrative interview conducted by the Zhengzhou Market Supervision Administration with Ctrip Travel Network, highlighting the company's violations of e-commerce laws and the need for comprehensive rectification to ensure fair competition and protect the rights of platform operators [1][2]. Group 1: Regulatory Actions - On September 17, 2025, the Zhengzhou Market Supervision Administration held an administrative interview with Ctrip Travel Network due to violations of the E-commerce Law and regulations against unfair competition [1]. - The administration issued a "Notice of Correction" on September 4, 2025, requiring Ctrip to rectify unreasonable restrictions on transactions and pricing imposed on platform operators [1]. Group 2: Required Rectifications - Ctrip is mandated to complete contract revisions and optimize pricing tools within a specified timeframe, establishing a long-term compliance mechanism to prevent future violations [1]. - The company must enhance internal supervision and accountability to ensure lawful business operations [1]. Group 3: Emphasis on Fair Competition - The meeting underscored that fair competition is central to a market economy, urging internet platform companies to strengthen their legal awareness and actively cooperate with regulatory authorities [1]. - Ctrip is required to correct unreasonable restrictions, respect merchants' autonomy, and address issues such as "mandatory activation and inability to exit" [1]. - The company must ensure the legitimate rights of platform operators are protected, prohibiting the use of technical means to manipulate prices or restrict transactions [1].

Core Viewpoint - The Zhengzhou Market Supervision Administration has conducted an administrative interview with Ctrip Travel Network for violating e-commerce laws and regulations, emphasizing the need for the company to rectify its practices to ensure fair competition and protect the rights of platform operators [1][2]. Group 1: Regulatory Actions - The Zhengzhou Market Supervision Administration issued a "Notice of Correction" to Ctrip on September 4, 2025, due to unreasonable restrictions on transactions and pricing imposed on platform operators [1]. - The administrative interview aims to urge Ctrip to comprehensively rectify its operations and establish a long-term compliance mechanism to prevent similar issues in the future [1][2]. Group 2: Compliance and Fair Competition - The meeting highlighted the importance of fair competition as a core principle of the market economy, urging internet platform companies to enhance their legal awareness and actively cooperate with regulatory authorities [2]. - Ctrip is required to revise contract terms and optimize pricing tools within a specified timeframe, ensuring respect for merchants' autonomy and correcting unreasonable restrictions such as "mandatory activation and inability to exit" [2]. - The Zhengzhou Market Supervision Administration will continue to monitor the progress of Ctrip's rectification efforts and conduct inspections to ensure compliance with market regulations [2].

Core Points - Zhengzhou Market Supervision Administration conducted an administrative interview with Ctrip Travel Network on September 17, 2023, due to violations of the E-commerce Law and regulations against unfair competition [1][2] - The platform was found to impose unreasonable restrictions on transactions and pricing of operators within the platform, prompting the issuance of a corrective notice on September 4, 2025 [1] - The meeting emphasized the importance of fair competition in the market economy and urged internet platform companies to enhance legal awareness and comply with regulations [2] Summary by Sections - **Regulatory Actions** - Ctrip Travel Network was summoned for an administrative interview due to violations of the E-commerce Law and unfair competition regulations [1] - A corrective notice was issued to Ctrip, requiring the company to amend contract terms and optimize pricing tools within a specified timeframe [1] - **Compliance and Rectification** - The meeting called for Ctrip to take the administrative interview seriously and complete the required rectifications within the deadline [1] - Companies are urged to establish a long-term compliance mechanism and strengthen internal supervision to prevent similar issues in the future [1] - **Market Environment and Responsibilities** - The importance of fair competition was reiterated, with a call for internet platforms to respect merchants' rights and correct unreasonable restrictions [2] - Continuous monitoring and inspections will be conducted by the Zhengzhou Market Supervision Administration to ensure compliance and maintain a healthy market order [2]