Core Viewpoint - The announcement by the National Development and Reform Commission and the State Administration for Market Regulation aims to address disorderly price competition while maintaining fair market pricing order through various regulatory measures [1][2]. Group 1: Regulatory Measures - The announcement emphasizes the need for a combination of pre-guidance and ongoing supervision to maintain a fair competitive market environment [1]. - It includes measures such as researching and evaluating industry average costs, strengthening price regulation, and standardizing bidding behaviors [1][2]. - The announcement allows industry associations to assess average costs in industries with significant price competition issues under the guidance of relevant authorities [1][3]. Group 2: Impact on Businesses - The initiative is expected to provide businesses with a reference for reasonable pricing, guide improvements in production management, and assess industry competition [2]. - Businesses are encouraged to optimize pricing strategies based on their own costs and industry averages, which will help them offer reasonably priced goods and services [2][3]. - The announcement clarifies that bids below the operator's own costs are considered improper, while bids above their own costs but below industry averages are acceptable [3]. Group 3: Enforcement and Compliance - The announcement outlines three regulatory measures for businesses engaging in disorderly price competition: warnings, regulatory enforcement, and credit punishment [3]. - Businesses that fail to comply after warnings will be closely monitored, and necessary investigations into costs and price supervision will be conducted [3]. - The announcement stresses the importance of adhering to the bidding law and regulations to ensure product and service quality [3]. Group 4: Market Trends - Recent data from the National Bureau of Statistics indicates improvements in profits and prices in related industries, such as a 22.1% year-on-year profit increase in the raw materials manufacturing sector [4]. - The steel industry has reported a turnaround from losses to profits, reflecting positive market adjustments [4]. - The Producer Price Index (PPI) has shown a year-on-year decline of 2.9%, with a narrowing of the decline compared to previous months, indicating a potential stabilization in pricing trends [5].