2025-05-20
National Development and Reform Commission: Intense, involutionary competition must be rectified.
On May 20, the National Development and Reform Commission (NDRC) held a press conference for May. Li Chao, Deputy Director of the Policy Research Office of the NDRC and spokesperson for the commission, stated that the NDRC is addressing the root causes of involutionary competition by adopting industry-specific measures, targeted solutions, and comprehensive approaches to resolve structural contradictions in key industries, promoting healthy industrial development and upgrading.
Specifically, this involves: Firstly, upholding innovation-driven development to accelerate industrial transformation and upgrading, strengthening the leading role of enterprises in technological innovation, supporting enterprises in improving product quality and core competitiveness through technological innovation, increasing the supply of high-end products and services, continuously exploring diversified markets, and enhancing resilience.
Secondly, strengthening local constraints and breaking down local protectionism and market segmentation. In January this year, the NDRC issued guidelines for the construction of a unified national market. These guidelines clearly stipulate that local authorities must not violate national regulations, prohibiting the implementation of preferential policies in areas such as finance, taxation, land, pricing, resources, and environment, and focusing efforts on tackling and rectifying persistent and evolving local protectionism and market segmentation.
Thirdly, optimizing industrial layout and curbing the expansion of backward production capacity. This involves leveraging the supporting role of quality standards, promoting mergers and acquisitions through market-oriented mechanisms, accelerating the elimination of backward and inefficient production capacity in industries such as oil refining and steel, and scientifically evaluating new production capacity projects in industries such as coal chemical industry and alumina. Strengthening industry self-discipline and guiding enterprises in the new energy, automotive, and photovoltaic industries to focus on technological research and development.
Fourthly, strengthening market supervision and cracking down on market irregularities involving inferior and low-priced products. This includes legally investigating unfair competition, resolutely cracking down on infringement and counterfeiting, increasing the intensity of quality supervision and inspection, jointly maintaining a fair competitive market order based on the principle of survival of the fittest, and effectively leveraging the vitality and role of market mechanisms. (People's Finance and Economics, China.com.cn live broadcast)
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