China on Thursday released a draft amendment to its pricing law to address excessive competition and price wars, amid ongoing deflationary pressures. The proposed changes aim to curb practices like selling below cost to eliminate competitors or monopolize markets, except in cases of legitimate discounts such as for seasonal or overstocked goods. The draft also bans using data, algorithms, or technology for improper pricing behavior. Published by the National Development and Reform Commission (NDRC), the revision reflects China’s evolving economy since the original 1998 law, as new business models emerge and low-price competition becomes more prevalent. Authorities plan to refine rules against price collusion, gouging, and discrimination, and tackle “involution-style” competition. The draft proposes stricter penalties, including higher fines for price violations. Public comment is open until August 23.
