Core Viewpoint - The announcement by the National Development and Reform Commission and the State Administration for Market Regulation aims to regulate chaotic price competition, maintain a good market price order, and support high-quality development [1][2]. Group 1: Market Price Order - The current chaotic competition in some industries may lead to negative impacts on industry development, product innovation, and quality safety, which is detrimental to the healthy development of the national economy [2]. - The announcement emphasizes the need for price policies to work in conjunction with industrial policies to effectively address chaotic price competition [2][3]. Group 2: Industry Average Cost Assessment - The announcement allows industry associations to assess the average costs in industries with significant chaotic price competition, providing a reference for reasonable pricing [4]. - Assessing industry average costs serves three main purposes: providing pricing references for operators, guiding improvements in production management, and evaluating industry competition conditions [4]. Group 3: Regulation of Bidding Behavior - The announcement includes specific regulations for operators' bidding behavior, emphasizing that bids should not be below the operator's own costs [6][7]. - Operators are reminded to adhere to the bidding law and regulations, with measures in place for those who engage in price competition below costs, including warnings, regulatory enforcement, and credit penalties [7][8]. Group 4: Role of Industry Associations - Industry associations are encouraged to promote self-discipline within the industry and guide operators to maintain fair competition [5][8]. - The announcement highlights the importance of industry associations in monitoring and regulating the competitive landscape within their respective sectors [5].

Core Viewpoint - The recent announcement by the National Development and Reform Commission and the State Administration for Market Regulation aims to address disorderly price competition and maintain a sound market price order, marking a significant step in regulating enterprise competition in China [1][2]. Group 1: Key Features of the Announcement - The new approach combines proactive guidance and comprehensive regulation throughout the process, moving away from solely punitive measures after the fact [2]. - The introduction of "industry average cost" as a reference point is a key tool, which will assist industry associations in evaluating and publishing average costs to guide reasonable pricing and identify abnormally low prices [2][3]. Group 2: Focus Areas of the Regulation - A critical aspect of the regulation is the clarification of "cost" in bidding processes, specifying that it refers to the bidder's own costs, thus establishing a consensus in the industry [3]. - The policy aims to protect innovation and product quality, preventing the phenomenon of "bad money driving out good," and ultimately promoting high-quality industry development [3].

Core Viewpoint - The recent announcement by the National Development and Reform Commission and the State Administration for Market Regulation aims to address disorderly price competition and maintain a sound market price order, marking a shift in approach compared to previous efforts in 2005 and 2007 [1][2][3] Group 1: Key Features of the Announcement - The new governance approach combines proactive guidance and comprehensive supervision, moving away from solely punitive measures to a full-chain regulation process that includes cost reference, reminders, and enforcement [1] - The introduction of "industry average cost" as a reference point is intended to guide industry associations in evaluating and publishing average costs, providing a benchmark for reasonable pricing and helping to identify abnormally low prices [2] Group 2: Implications for Industries - The announcement signals that the goal is not to eliminate price competition but to protect innovation and product quality, preventing the phenomenon of "bad money driving out good" and ultimately promoting high-quality industry development [3] - The government positions itself as a rule-maker and maintainer rather than a direct price intervener, using the "industry average cost" as an informational tool to guide enterprises in making autonomous decisions and returning to fair competition [3] - As companies withdraw from disorderly price wars, improved profitability is expected to allow for greater investment in research and innovation, leading to higher quality and better value products and services for consumers in the long run [3]

Group 1 - The core viewpoint of the article emphasizes the need for regulatory measures to address disorderly price competition in certain industries, which can negatively impact industry development and economic health [2][5]. - The announcement aims to protect the autonomy of businesses in pricing while implementing a combination of pre-guidance and ongoing supervision to maintain a fair competitive market environment [2][4]. Group 2 - The announcement outlines the background of the issue, stating that disorderly competition can lead to adverse effects on product innovation and quality, necessitating coordinated efforts between price policy and industrial policy [2]. - It highlights the role of industry associations in assessing average industry costs, which can help businesses set reasonable prices and improve management practices [3][4]. - Specific regulatory measures for businesses engaging in disorderly price competition include warnings, enforcement actions, and credit penalties for non-compliance [5]. - The announcement sets clear requirements for businesses regarding bidding practices, prohibiting bids below their own costs while allowing bids above their costs but below industry averages [6]. - To ensure the implementation of the announcement, the regulatory bodies will promote policy awareness, encourage industry self-discipline, monitor market conditions, and enforce regulations against price violations [7].

Core Viewpoint - The announcement aims to address disorderly price competition in certain industries, which negatively impacts industry development, product innovation, and quality safety, ultimately harming the healthy development of the national economy [2] Group 1: Background and Purpose - Price competition is a crucial aspect of market competition, and its normal functioning is essential for the effective allocation of resources in a socialist market economy [2] - The government is implementing policies to resolve structural contradictions in key industries, promoting the exit of inefficient capacities and expanding the supply of mid-to-high-end capacities [2] Group 2: Measures for Addressing Price Competition - The announcement includes measures such as researching and evaluating industry average costs, strengthening price supervision, and standardizing bidding behaviors to maintain a fair competitive market environment [2][3] - Industry associations are encouraged to conduct evaluations of average costs to provide references for reasonable pricing, guide operational improvements, and assess industry competition [3] Group 3: Regulatory Actions Against Disorderly Competition - The announcement outlines three regulatory measures for businesses engaged in disorderly price competition: reminders and warnings, regulatory enforcement, and credit punishment [4] - Businesses are required to adhere to the bidding law, which prohibits bidding below cost, ensuring product and service quality [5][6] Group 4: Implementation of the Announcement - The National Development and Reform Commission and the State Administration for Market Regulation will guide local authorities in implementing the announcement's key measures [7][8] - Efforts will include policy promotion, encouraging industry self-discipline, enhancing market monitoring, and strengthening regulatory enforcement to maintain a fair competitive market environment [8]

Core Viewpoint - The announcement aims to address disorderly price competition in certain industries, which negatively impacts industry development, product innovation, and quality safety, ultimately affecting the healthy development of the national economy [2]. Group 1: Background and Purpose - Price competition is a crucial aspect of market competition, and its normal functioning is essential for the effective allocation of resources in a socialist market economy [2]. - The government is implementing policies to resolve structural contradictions in key industries, promoting the exit of inefficient capacities and expanding the supply of mid-to-high-end capacities [2]. Group 2: Measures for Addressing Price Competition - The announcement emphasizes the need for a combination of pre-guidance and ongoing supervision, including industry average cost assessments, enhanced price regulation, and standardized bidding behaviors to maintain a fair competitive market environment [2][3]. - Industry associations are encouraged to conduct assessments of average costs in industries with significant price competition issues, providing references for reasonable pricing and improving production management [3]. Group 3: Regulatory Actions Against Disorderly Competition - The announcement outlines three regulatory measures for businesses engaged in disorderly price competition: reminders to comply with pricing norms, enforcement actions against non-compliance, and credit-based penalties for violations [4]. - Businesses are required to adhere to the bidding laws, ensuring that bids are not below their own costs, while also maintaining product and service quality [6]. Group 4: Implementation and Monitoring - The National Development and Reform Commission and the State Administration for Market Regulation will guide local authorities in implementing the announcement's principles and measures [7]. - Key actions include policy promotion, encouraging industry self-discipline, monitoring market prices, and enforcing regulatory measures to address price violations [7][8].