The "involution-style" competition, as a kind of inefficient and unfair competition, has caused great harm to many industries and enterprises and has also affected the high-quality development of the economy. How to rectify the "involution-style" competition? A relevant official from the National Development and Reform Commission responded on May 20th.
At a press conference held by the National Development and Reform Commission on the same day, Li Chao, deputy director of the Policy Research Office and spokesperson of the National Development and Reform Commission, said that currently, China's economy is in a period of transition from old to new growth drivers. New industries, new business forms and new models are emerging one after another, and traditional industries are accelerating their transformation and upgrading. During this process, some industries have indeed encountered structural problems. Some have blindly followed the trend of investment, while others have failed to keep up with the pace of technological updates and iterations.
"Some enterprises are trapped in 'intra-industry' competition. Some sell at low prices, ultra-low prices, or even below cost. Some produce and sell fake and substandard products. All these have crossed the boundaries and bottom lines of market competition, distorted market mechanisms, and disrupted the fair competition order. They must be rectified," said Li Chao.
Li Chao said that the National Development and Reform Commission, in collaboration with relevant parties, has targeted the crux of the problems, adopted industry-specific measures and prescribed the right remedies to address the structural contradictions in key industries in a comprehensive manner, promoting the healthy development and quality improvement of industries.
First, we must adhere to innovation-driven development and accelerate industrial transformation and upgrading. We should strengthen the leading role of enterprises in scientific and technological innovation, support enterprises in enhancing product quality and core competitiveness through technological innovation, increase high-end production capacity and high-quality supply, and continuously expand diversified markets.
Second, we will strengthen local constraints and intensify efforts to break down local protectionism and market segmentation. We will issue the "Guidelines for the Construction of a National Unified Market (Trial)" and require all regions not to exceed the red lines and bottom lines set by the state when implementing preferential policies for investment promotion in terms of finance, taxation, pricing, land, and resources and the environment. We will also focus our efforts on addressing the persistent and ever-changing local protectionism and market segmentation.
Third, optimize the industrial layout and curb the disorderly expansion of backward production capacity. Play the supporting role of quality and standards, promote mergers and acquisitions through market-oriented means, and accelerate the elimination of inefficient and backward production capacity in the oil refining and steel industries; scientifically assess new capacity projects in the coal chemical and alumina industries to prevent blind new construction; strengthen industry self-discipline and guide new energy vehicle and photovoltaic enterprises to focus on technological research and development.
Fourth, we will strengthen market regulation and purify the market competition environment. We will crack down hard on market chaos such as low-quality and low-priced products, investigate and punish unfair competition and price violations in accordance with the law, resolutely combat infringement, counterfeiting, and the production and sale of fake goods, and intensify quality supervision and inspection. We will jointly maintain a fair and competitive market order where the fittest survive.
