Stop the price wars: China's state media guns target cutthroat industrial competition
China's Communist Party mouthpiece has taken another shot at the
unsustainable price wars dragging down industrial profits in the world's second-biggest economy, urging firms to abandon the race to the bottom and refocus on quality.
In a front-page editorial on Sunday, People's Daily raged against
cutthroat neijuan tactics 'infesting' various industries with excess capacity, including
electric vehicles , photovoltaics and batteries.
Neijuan, also known as 'involution', refers to a self-defeating cycle of excessive competition.
'Solar module prices have tumbled to just 0.6 yuan per watt, prices have been slashed on over a hundred EV models while producers of energy storage equipment seek to underbid each other in the race for orders,' the editorial said.
'Disorderly price undercutting and homogeneous competition have infested many industries, distorting the market mechanism.
'It is a race to the bottom and will weaken the competitiveness of the entire industry.'
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