China vows to rein in intense competition, build unified market

[BEIJING] China’s top leadership has pledged to curb aggressive price competition among businesses, aiming to accelerate efforts towards a unified national market to help boost domestic demand.

Officials at a high-level economic meeting chaired by President Xi Jinping said they would crack down on “disorderly” low-price competition and phase out outdated industrial capacity, Xinhua News Agency reported on Tuesday (Jul 1).

For years, Beijing has sought to dismantle local protectionist barriers in hopes of spurring consumption and domestic demand. With global trade tensions rising, that mission has taken on greater urgency. The renewed focus on curbing excessive competition and overcapacity suggests top leaders are concerned about the deflationary pressures weighing on the economy.

To build a more integrated and efficient domestic market, China plans to standardise rules and infrastructure, align government practices, and unify markets for labour, land, capital and other inputs. Officials also called for the regulation of local investment promotion efforts and strengthening disclosure of related information. The fiscal system will be improved to support the push.

The meeting, which included Premier Li Qiang and Vice-Premier Ding Xuexiang, also discussed plans to boost China’s maritime economy.

Authorities pledged to encourage private sector investment as part of efforts to boost homegrown innovation in maritime technology and nurture leading companies in the sector.

Targeted areas include deep-sea fishing, marine biopharmaceuticals, as well as marine tourism. Officials also promised to ensure the orderly development of offshore wind projects. BLOOMBERG