Xi Jinping wages war on price wars
Unfortunately for China’s leader, his own policies are often to blame for them
When firms raise prices, “gouging” their customers, many governments complain. Some cannot resist intervening. But in today’s China, the opposite is happening. In May the state reprimanded carmakers not for raising prices, but for cutting them. “There are no winners in this price war,” it said, blithely ignoring the happy customers who can now buy a zippy electric car for less than $8,000.
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This article appeared in the Finance & economics section of the print edition under the headline “Involutionary road”
Finance & economics
July 5th 2025- Xi Jinping wages war on price wars
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