Back to today’s briefing

Story perspectives

China Reforms Price Law to Boost Innovation and Stability

7/27/2025

49 6

Left

China Reforms Pricing

China is taking bold steps to reshape its Price Law, aiming to curb cutthroat competition and set clear standards against unfair pricing. This strategic amendment is designed to foster innovation and stabilize the economy, garnering support from key sectors like new-energy vehicles and construction, ultimately promoting high-quality industrial products.

Center

China Tackles Overcapacity

In the upcoming U.S.-China trade talks in Stockholm, the spotlight will be on China's heavy reliance on exports and fierce price wars. The U.S. aims to tackle China's industrial overcapacity while encouraging domestic spending. Meanwhile, China is set to revise its pricing law to combat ruthless competition, striving to stabilize its economy and fight deflation.

History

Historical Context

In 1994, China enacted the Price Law to enhance pricing practices amid economic reforms initiated in the late 1970s. These reforms transitioned China to a mixed economy, promoting market mechanisms alongside state planning. As of 2023, revisions to the Price Law aim to address ongoing issues like price wars and overcapacity, reflecting the complexities of balancing export-driven growth with domestic consumption.

1 of 3

China Reforms Pricing

China is taking bold steps to reshape its Price Law, aiming to curb cutthroat competition and set clear standards against unfair pricing. This strategic amendment is designed to foster innovation and stabilize the economy, garnering support from key sectors like new-energy vehicles and construction, ultimately promoting high-quality industrial products.

1 / 3