China just told its tech giants to stop fighting on price and start investing in AI
TL;DR
A top Communist Party journal told China’s platforms to stop price wars and invest in AI. The signal suggests regulatory stabilisation after years of crackdowns.
A top-level Communist Party publication has signaled a shift in how Beijing intends to govern its largest internet platforms. A draft commentary set to appear in the Qiushi journal on Monday says the focus will be on balancing support for growth with enhanced regulatory oversight. The message is directed at companies including Alibaba, Meituan, and PDD Holdings.
The guidance reiterates Beijing’s stance on curbing “involution-style” competition, a reference to the price wars and aggressive subsidies that have defined Chinese e-commerce in recent years. Platforms are told to compete on value, not on who can lose money the fastest. The commentary also calls for stronger oversight of algorithms, data use, and consumer protection.
The more significant signal is what the commentary encourages. Platform...
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