China Makes Ending Price Wars a Top Priority Amid Trade Tensions
The Chinese government has made curbing price wars a top priority amid ongoing trade tensions. President Xi Jinping has endorsed a campaign to address one of the primary drivers of deflation and conflicts with trading partners. The move is part of a broader effort to reduce excess competition in the Chinese economy and promote more sustainable growth. The campaign aims to tackle the practice of companies undercutting each other on prices to gain market share, which has led to a race to the bottom and put pressure on profit margins. This, in turn, has contributed to deflationary pressures and trade frictions with China's trading partners. By reining in price wars, the government hopes to foster a more stable and predictable business environment, supporting the country's economic development and international relations.
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