National Development and Reform Commission and State Administration for Market Regulation: Addressing Disorderly Price Competition and Maintaining a Healthy Market Pricing Order

To thoroughly implement the decisions and arrangements of the Party Central Committee and the State Council and to govern enterprises’ disorderly competition in accordance with laws and regulations, the National Development and Reform Commission and the State Administration for Market Regulation recently issued... On Governing Disorderly Price Competition Announcement on Maintaining a Sound Market Price Order (Hereinafter referred to as the “Announcement”). The Announcement states that price competition is an important mechanism in market competition; however, disorderly competition can have negative impacts on industry development, product innovation, and product quality and safety, thereby hindering the healthy development of the national economy. The state supports fair, open, and lawful market competition and safeguards normal price order. For goods and services subject to market-regulated pricing, operators shall, in accordance with the Price Law, adhere to the principles of fairness, legality, and good faith and credit, taking production and operating costs and market supply and demand conditions as the fundamental basis, exercise their autonomous pricing rights in compliance with the law, and conscientiously maintain market price order, jointly fostering a market environment characterized by fair and orderly competition. Based on current laws and regulations and adopting a strategy that combines ex-ante guidance with ongoing and post-event supervision, the Announcement puts forward a number of governance measures. These include conducting surveys and assessments of industry average costs. For key industries where disorderly price competition is particularly prominent, industry associations and other relevant organizations will be guided to conduct surveys and assessments of industry average costs, providing operators with reference for setting reasonable prices. Industry associations are required to strictly comply with the provisions of the Price Law and the Anti-Monopoly Law, promote self-discipline within the industry, and guide operators to jointly uphold a fair competitive order in their respective sectors. Reminder and warning measures will also be implemented. Operators suspected of engaging in disorderly price competition will receive reminders and warnings, urging them to voluntarily regulate their pricing behavior and strictly abide by the bottom line of price competition. Regulatory enforcement will be strengthened. Operators who fail to regulate their pricing behavior even after receiving reminders and warnings will be given special attention; if necessary, cost investigations and price supervision inspections will be conducted. Any violations of pricing laws and regulations discovered will be dealt with according to law. The role of credit-based regulation will be fully leveraged, and penalties for dishonesty will be imposed in strict accordance with the law and regulations. At the same time, operators are required to strictly comply with the Tendering and Bidding Law and its Implementing Regulations, and voluntarily regulate their tendering and bidding practices. The National Development and Reform Commission and the State Administration for Market Regulation, together with relevant industry authorities, will guide localities to strengthen policy communication, remind operators to conduct business in compliance with the law, regulate pricing behavior, and maintain a sound market price order.

↓The following is the original announcement↓

National Development and Reform Commission of the People's Republic of China

State Administration for Market Regulation

Public Announce

No. 4, 2025

Price competition is one of the important mechanisms in market competition. However, disorderly competition can have negative impacts on industry development, product innovation, and product quality and safety, and is detrimental to the healthy development of the national economy. To regulate market pricing behavior, maintain a sound market pricing order, and support high-quality development, we hereby issue the following announcement regarding relevant matters.
1. For goods and services subject to market-regulated pricing, operators shall, in accordance with the provisions of the “Price Law of the People’s Republic of China,” adhere to the principles of fairness, legality, and honesty and good faith. Taking production and operating costs as well as market supply and demand conditions as the fundamental basis, they shall exercise their autonomous pricing rights in compliance with the law, conscientiously uphold market price order, and jointly foster a market environment characterized by fair competition and orderly competition.
II. For key industries where disorderly price competition is particularly prominent, industry associations and other relevant organizations, under the guidance of the National Development and Reform Commission, the State Administration for Market Regulation, and the competent authorities in respective industries, may conduct research and assessments of the industry’s average costs to provide reference for operators in setting reasonable prices.
Third, the departments of development and reform and market regulation, in collaboration with the competent authorities of respective industries, should strengthen policy communication and education, reminding operators to conduct business in strict compliance with laws and regulations and to enhance product quality and service standards. Operators suspected of engaging in disorderly price competition should be promptly reminded and cautioned, and required to voluntarily regulate their pricing practices and firmly uphold the bottom line for price competition.
IV. The development and reform authorities and market regulatory departments shall pay close attention to operators who, despite being reminded and warned, still fail to comply with pricing regulations. When necessary, they shall conduct cost investigations and price supervision and inspection. Any violations of pricing laws and regulations discovered shall be dealt with according to law.
V. Operators shall strictly comply with the provisions of the “Tendering and Bidding Law of the People’s Republic of China” and the “Implementation Regulations of the Tendering and Bidding Law of the People’s Republic of China,” consciously regulate their tendering and bidding activities, and shall not submit bids at prices below cost, thereby ensuring the quality of products and services.
6. Industry associations shall strictly comply with the provisions of the “Price Law of the People’s Republic of China” and the “Anti-Monopoly Law of the People’s Republic of China,” promote self-regulation within the industry, and guide operators to jointly uphold a fair competitive order in the industry.
7. The National Development and Reform Commission and the State Administration for Market Regulation, together with relevant departments, will closely monitor market price competition and safeguard price order in key areas. They will fully leverage the role of credit-based regulation and impose sanctions on those found to be失信 (dishonest) in accordance with laws and regulations.