Review № 11 of Chinese Antitrust News from the Experts of the BRICS Competition Centre (Pt. I)
- SAMR has begun to combat local governments’ antitrust violations
- SAMR tightens live commerce regulations
- Chinese logistics giant Cainiao opens a “green corridor” for exporters
- Chinese online retailer JD is fighting for the domestic food delivery market
- New competitor in the electric vehicle market: SAIC is teaming up with Huawei
- Chinese online retailers Shein and Temu announced price increases in the US
- Chinese teahouse chain Chagee debuts on the US Nasdaq
SAMR has begun to combat local governments’ antitrust violations
SAMR has launched a special campaign to combat the abuse of administrative powers to eliminate or restrict competition.
The focus is on four key issues:
• unreasonable restrictions on the movement of companies between regions
• the creation of artificial barriers to the free movement of goods
• discriminatory practices against companies from other provinces
• local protectionism and market segmentation
Particular importance is attached to the feedback mechanism with the business community. The authorities intend to create effective channels for receiving information about violations by businesses. All incoming reports will be carefully checked, and prompt response measures will be taken based on the violations identified. SAMR will take special control over the investigation of the most complex and high-profile cases.
Source: SAMR
SAMR tightens live commerce regulations
SAMR has published 10 typical cases of violations in the field of live commerce (marketing live broadcasts). Among them are false advertising, the sale of products that do not meet standards, violation of trademark rights, and the use of medical terminology in advertising non-medical products. As part of this initiative, the regulator plans to create a single digital database of all streamers and sellers, where all the necessary information will be recorded, implement a system for tracking the origin of goods, clarify the minimum number of entities associated with live commerce, and tighten liability for violations. These measures are aimed at protecting consumer rights and creating a level playing field for bona fide sellers.
Source: SAMR
Chinese logistics giant Cainiao opens a “green corridor” for exporters
In response to new tariff restrictions from the United States, the Cainiao platform, the logistics division of the Chinese technology company Alibaba Group, announced the launch of a cross-border "green corridor" designed to help Chinese companies maintain competitiveness in international markets.
The new initiative provides access to an extensive network of more than 40 overseas warehouses located in key regions - from Europe and North America to Southeast Asia and Australia.
Exporters are provided with significant benefits: free storage of goods in warehouses for up to two months, reduced tariffs for transportation and special conditions for delivery from the warehouse to the end consumer.
A special feature of the new program is the creation of alternative logistics routes through hubs in Mexico and Vietnam, which helps minimize tariff risks, increase the flexibility of supply chains and diversify business operations. This approach reflects the growing trend towards regionalization of trade flows in the face of increasing protectionist measures.
Sources: ChinaDaily, STCN
Chinese online retailer JD is fighting for the domestic food delivery market
Chinese retailer JD has announced plans to hire 100,000 full-time couriers over the next three months, a major personnel move aimed at strengthening the company’s position in the battle against market leader Meituan, which controls about 67% of the industry.
In its statement, JD directly accused its competitors of restrictive practices, claiming that some platforms prohibit couriers from accepting orders through their service. In turn, the company is offering a guaranteed order volume for couriers who were fired for cooperating with JD to ensure their stable level of income. The company emphasized that it will not force couriers to choose only one platform.
Earlier, on February 19, JD became the first platform in China to offer a comprehensive social insurance program for full-time couriers, strengthening the company’s position in the fight for talent.
Sources: Bloomberg, ChinaDaily
New competitor in the electric vehicle market: SAIC is teaming up with Huawei
Chinese auto giant SAIC Motor, known for its collaboration with General Motors and Volkswagen, has teamed up with technology leader Huawei to create electric vehicles under the new Shangjie brand.
The first model, a crossover priced from 170,000 yuan ($23,270), will go on sale in the fall of 2025. The car will be equipped with autonomous driving and multimedia systems developed by Huawei.
SAIC, which has long held a leading position in the Chinese auto market thanks to sales of gasoline-powered cars, has faced a drop in demand. If in 2018 the automaker sold a record 7 million cars, then by 2024 sales have fallen to 4 million. This is due to the growing popularity of electric vehicles of brands such as Tesla, Nio, Xpeng and Li Auto, which are actively developing thanks to government support.
The new Shangjie project has become part of SAIC's strategy to regain lost ground. Huawei, in turn, continues to strengthen its role as a high-tech solutions provider.
Source: SCMP
Chinese online retailers Shein and Temu announced price increases in the US
Chinese cross-border e-commerce platforms Shein and Temu have announced price increases for American consumers starting April 25, due to new U.S. tariff rules that will end duty-free imports of cheap goods from China starting May 2nd.
"Prices will remain the same until April 25th, so you can shop at today's prices," Temu said. "We have stocked up and are ready to ensure smooth delivery of your orders until then."
Shein and Temu have gained popularity among Americans for their wide selection of products at competitive prices. Most of the products are shipped directly from factories or warehouses in China.
Source: ChinaDaily
Chinese teahouse chain Chagee debuts on the US Nasdaq
Shares of Chinese teahouse chain Chagee rose 16% on their first day of trading on the Nasdaq stock exchange. The company raised $411 million in its IPO.
On April 17, Chagee shares closed at $32.44 on the Nasdaq, above its IPO price of $28. As of April 18, Chagee’s market capitalization was around $6 billion.
The company reportedly plans to use the proceeds from the IPO to expand its network both in China and overseas, as well as invest in technology.
As of December 2024, Chagee had 6,440 teahouses, up 83% from a year earlier. It has more than 150 locations overseas, including Malaysia, Thailand, Singapore, and Indonesia. The company also announced that its first teahouse in North America will soon open in Los Angeles.
The number of public companies in China's tea beverage market continues to grow, leading to increased competition. Before Chagee's IPO, four other major tea brands - Nayuki Holdings, Baicha, Baidao Industrial, Guming Holdings and Mixue Group - had already gone public in Hong Kong, with Mixue completing its listing only last month.
Source: YicaiGlobal
