China's antitrust authority continues to urge companies to engage in “rational competition.”
China’s top ecommerce players, like Alibaba, JD.com, and Meituan, are intensifying a price war in the instant retail sector, pouring nearly 200 billion yuan (US$28 billion) into subsidies for one-hour delivery services.
This fast-growing market, which delivers goods in as little as 30 minutes, is expected to surpass 2 trillion yuan ($279.2 billion) in sales by 2030.
To lure consumers, platforms are offering major discounts, including free drinks and subsidized meals.
The State Administration of Market Regulation recently summoned the three firms again, urging “rational competition.”
Xinhua criticized practices like “zero yuan purchases,” calling it a “bubble market” with no long-term sustainability.
Economists warn that aggressive price-cutting could worsen deflation, as retail sales growth slowed to 4.8% in June from 6.4% in May.
Merchants also report shrinking margins and rising food waste from unconsumed orders.
Despite these concerns, experts believe regulation will address specific issues without ending the competition.
Source: Tech in Asia
