On October 9th, the National Development and Reform Commission and the State Administration for Market Regulation issued the “Announcement on Governing Disorderly Price Competition and Maintaining a Good Market Price Order”.

The announcement states that price competition is one of the important ways of market competition, but disorderly competition will have negative impacts on the development of the industry, product innovation, quality and safety, etc., and is not conducive to the healthy development of the national economy.

The Announcement, in accordance with current laws and regulations, proposes a number of governance measures following the approach of combining pre-event guidance with mid – and post-event supervision.

Research and evaluate the average cost of the industry. For key industries with prominent problems of disorderly price competition, guide relevant institutions such as industry associations to conduct research and assessment on the average cost of the industry, providing references for operators to set reasonable prices.

Industry associations are required to strictly abide by the provisions of the Price Law and the Anti-Monopoly Law, promote industry self-discipline, and guide business operators to jointly maintain a fair competitive order within the industry.

Carry out reminders and warnings. Remind and warn business operators suspected of disorderly price competition, and require them to voluntarily regulate their pricing behavior and strictly adhere to the bottom line of price competition.

Strengthen supervision and law enforcement. Business operators who still fail to standardize their pricing behavior after being reminded and warned should be given special attention. When necessary, cost investigations and price supervision and inspection should be carried out. If any price violations or irregularities are found, they should be dealt with in accordance with the law. Give full play to the role of credit supervision and implement credit punishment in accordance with laws and regulations.

Business operators are required to strictly abide by the Bidding and Tendering Law and the Implementing Regulations of the Bidding and Tendering Law, and voluntarily standardize their bidding and tendering behaviors.

The original announcement is as follows:
Price competition is one of the important ways of market competition, but disorderly competition will have negative impacts on the development of the industry, product innovation, quality and safety, etc., which is not conducive to the healthy development of the national economy. To standardize market price behavior, maintain a good market price order, and support high-quality development, the following announcement is hereby made regarding relevant matters.

For goods and services subject to market regulation, business operators shall, in accordance with the provisions of the Price Law of the People’s Republic of China, follow the principles of fairness, legality and good faith, take production and operation costs and market supply and demand conditions as the basic basis, exercise their independent pricing power in accordance with the law, voluntarily maintain market price order, and jointly create a fair and orderly competitive market environment.

Second, for key industries where the problem of disorderly price competition is prominent, relevant institutions such as industry associations, under the guidance of the National Development and Reform Commission, the State Administration for Market Regulation and the industry’s competent authorities, may conduct research and assessment on the average cost of the industry to provide references for operators to set reasonable prices.

Third, the development and reform departments and the market supervision departments should, in conjunction with the industry’s competent authorities, strengthen the promotion and implementation of policies, remind business operators to operate in accordance with laws and regulations, and improve product quality and service levels. Remind and warn business operators suspected of disorderly price competition, and require them to voluntarily regulate their pricing behavior and strictly adhere to the bottom line of price competition.

Fourth, the development and reform and market supervision departments shall pay close attention to the operators who still fail to standardize their pricing behavior after being reminded and warned. When necessary, they shall conduct cost investigations and price supervision and inspection. If any price violations or irregularities are found, they shall be dealt with in accordance with the law.

V. Business operators shall strictly abide by the provisions of the “Bidding and Tendering Law of the People’s Republic of China” and the “Regulations for the Implementation of the Bidding and Tendering Law of the People’s Republic of China”, voluntarily standardize their bidding and tendering behaviors, and shall not bid at a price lower than the cost to ensure the quality of products and services.

Vi. Industry associations shall strictly abide by 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 industry self-discipline, and guide business operators to jointly maintain a fair competitive order within the industry.

Vii. The National Development and Reform Commission and the State Administration for Market Regulation will work closely with relevant departments to monitor the market price competition situation and maintain the price order in key areas. Give full play to the role of credit supervision and implement credit punishment in accordance with laws and regulations.

National Development and Reform Commission, State Administration for Market Regulation
October 9, 2025