China sets cost-accounting rules for key industrial products to curb low-price competition

As China steps up efforts to curb involution-style competition, tackling disorderly low-price competition has emerged as a key regulatory priority. But what qualifies as disorderly low-price competition, and how should an operator's costs be assessed?

The National Development and Reform Commission (NDRC) and the State Administration for Market Regulation (SAMR) have recently issued new guidance clarifying the principles and methodology for calculating costs in cases involving important industrial products, providing greater clarity on how potentially improper low-price practices may be identified and assessed. The Notice on