By MLex Staff ( June 4, 2026, 06:38 GMT | Insight) -- China's campaign against destructive business rivalry is not aimed at low prices themselves, but at “low-quality, low-price” competition. That view was set out in a commentary that appeared in a publication linked to China's top market regulator. Published ahead of China's annual "618" shopping festival, the commentary said reasonable low-price competition can benefit consumers, if products and services meet quality standards.China's campaign against destructive business rivalry is not aimed at low prices themselves, but at “low-quality, low-price” competition. That view was set out in a commentary that appeared in a publication linked to China's top market regulator. Published ahead of China's annual "618" shopping festival, a major Chinese mid-year online sales event, the commentary said reasonable low-price competition can benefit consumers, if products and services meet quality standards. It urged local regulators to distinguish legitimate price competition from “malicious” low-price practices and described cost investigations as critical evidence when determining whether pricing behavior warrants enforcement action. The commentary builds on two recent State Administration for Market Regulation, or SAMR, campaigns aimed at curbing what Beijing calls “involution-style” competition — or destructive rivalry — including a nationwide credit-enforcement initiative announced May 27 (see here) and a separate crackdown on “low-quality, low-price” practices unveiled two days later. It said both campaigns focus on the same priority sectors — livestream commerce, food delivery and key industrial products — but argued that the competitive distortions affecting each industry differ, requiring distinct enforcement approaches. In livestream commerce, concerns center on platform-driven price competition and the growing use of artificial intelligence to generate misleading promotional content. The commentary cited recent enforcement activity involving AI-generated celebrity endorsements and noted that new livestream-commerce rules require platforms to prevent the dissemination of false commercial information created through AI tools. For food-delivery services, the focus is on the pressure that platform pricing practices place on merchants. Excessive discounting, commission charges and mandatory promotions can squeeze already thin profit margins, creating incentives for businesses to reduce product quality or cut corners on food standards, it said. The commentary also highlighted a key enforcement challenge: determining whether responsibility should fall on platforms, merchants or both. While the credit-enforcement campaign provides a framework for identifying violations and escalating investigations, standards for determining when “involution-style” competition amounts to unlawful conduct may still require further development through enforcement practice, it said. For industrial products, key concerns include product-quality violations, defective products and false certification practices. Regulators already possess ample enforcement tools, while the challenge lies in making fuller use of those powers. It also called on local authorities to map out priority industries and business operators early and to strengthen lead-collection efforts, particularly in livestream commerce and food delivery....
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