Xi Wants to End China’s Price Wars. But How?
The president pulled the country out of deflation in 2015. He has a tougher job this time.
Price wars.
Photographer: Qilai Shen/BloombergInside China, price wars are far more dangerous than US tariffs. As President Xi Jinping starts to address the country’s ultra-competitive business culture, the trillion-dollar question is how — and whether he can succeed.
Race-to-the-bottom mentality is everywhere. The world’s biggest EV maker BYD Co. slashed prices by as much as 34% in May, exacerbating a decline in auto prices that began in late 2022. A turf war in the food-delivery market has e-commerce giants Alibaba Group Holding Ltd. and JD.com Inc. offering splashy discounts to take on sector leader Meituan. Hong Kong’s stock market, where these blue chips are listed, has lost momentum as a result.