OPINION

Opinion: China’s Digital Platforms Needs Healthy Competition, Not Ruinous Price Wars

By Caixin

Published: Jul. 28, 2025 5:54 p.m. GMT+8

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Regulators in Beijing are again signaling their concern with the state of China’s digital platform economy. The State Administration for Market Regulation (SAMR) recently summoned executives from the delivery and e-commerce giants Ele.me, Meituan, and JD.com Inc. to discuss their business practices. The message was clear: rein in aggressive sales promotions, compete rationally and follow the law. Regulators called a similar meeting in May to address “prominent problems” in the food delivery market. The goal, they said, is to build a healthy ecosystem where consumers, merchants, delivery people and the platform themselves can all thrive.

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Chinese regulators summoned major digital platforms like Ele.me, Meituan, and JD.com to address concerns over aggressive and possibly illegal pricing tactics harming the digital economy ecosystem.
Authorities highlighted issues such as "selling below cost," leading to reduced consumer choice, increased complaints about product quality, and threats to small businesses and innovation.
Regulators aim to curb destructive price wars while promoting fair competition, strengthening legal governance under e-commerce and anti-unfair competition laws.

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Who’s Who

Ele.me: Ele.me is a Chinese food delivery and e-commerce platform. It was recently summoned by Beijing regulators (SAMR) due to concerns about its business practices. Regulators aim to curb aggressive sales promotions and unfair pricing, particularly "selling below cost," to foster a healthier digital economy for consumers, merchants, and platforms.

Meituan: Meituan is a Chinese e-commerce and delivery giant that has been criticized by Beijing regulators for its aggressive sales promotions and participation in "ferocious price wars." Regulators are concerned that Meituan and similar platforms are engaging in "selling below cost" practices, which harms the entire market ecosystem including consumers, merchants, and delivery personnel. The government aims to foster healthy and fair competition within the digital economy.

JD.com Inc.: JD.com Inc. is an e-commerce giant in China. They were recently summoned by China's State Administration for Market Regulation (SAMR) due to concerns about their business practices, especially aggressive sales promotions and price wars. Regulators aim to foster a healthier digital platform ecosystem, as current practices, including "selling below cost," are deemed illegal and harmful to consumers and small businesses.

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What Happened When

May 2025：: SAMR called a meeting to address 'prominent problems' in the food delivery market with major digital platform companies.

This year (2025)：: Local government departments began summoning platform company executives for talks, following the lead of the national regulator.

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