Chinese President Xi Jinping has called for an “orderly exit“ from outdated production capacity and curbing “chaotic“ price competition, Reuters and Xinhua reported, citing an article written by Xi, quoted by News.bg.
Chinese leaders have pledged to end aggressive price cuts by some companies, which regulators say are fueling excessive competition that is damaging the economy.
“This is a hard-hit area of 'involution' and should be effectively managed in accordance with laws and regulations,” Xi said in the article.
He noted that industry associations should play a greater role in self-regulation, guiding companies to improve product quality and facilitating an orderly exit from outdated production capacity.
The article also called for correcting irregularities in government procurement and bidding procedures, as well as addressing “chaotic” practices of local governments in attracting business and investment.
Xi called for stricter rules on local governments’ actions in promoting economic development and reaffirmed China’s goal of building a single national market.