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State-run Media: Low-level 'Involutionary' Competition Wastes Social Resources, Detrimental to LT Industry Growth
China's food delivery platform competition is intense. The People's Daily published a commentary today (26th) saying that the current low-level 'involutionary' comp...
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State-run Media: Low-level 'Involutionary' Competition Wastes Social Resources, Detrimental to LT Industry Growth
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China's food delivery platform competition is intense. The People's Daily published a commentary today (26th) saying that the current low-level 'involutionary' competition in industries such as China's food delivery platforms is not only a waste of social resources, but may even lead to a multi-loss situation.

The article mentioned the need to establish a sound regular supervision mechanism to timely halt and effectively prevent 'involution,' ensuring the industry operates on a regulated track.

Related NewsCCBI Slashes MEITUAN-W (03690.HK) TP to $157.4, Expects Persistent Price War to Be Unlikely

People's Daily also specifically named some companies, and noted that JD-SW (09618.HK)  -1.600 (-1.247%)    Short selling $124.16M; Ratio 20.647%   entered the food delivery sector this year, recently engaged in a fierce price war with Meituan Waimai (Meituan Takeaway) by launching "RMB10 billion subsidy", upgraded Taobao from 'Hourly Delivery' to "Flash Purchase" and offered large-scale subsidies with other platforms to ensure food delivery services. Although such 'involution' provides short-term benefits to consumers, it is detrimental to long-term industry growth.

China's State Administration for Market Regulation (SAMR) recently, along with four departments, held discussions with platform companies like JD-SW and MEITUAN-W (03690.HK)  -1.700 (-1.287%)    Short selling $428.29M; Ratio 12.623%   , urging fair and orderly competition, so as to create a good market environment, strengthen internal management and promote the standardized and high-quality development of the platform economy, the article added.
(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2025-05-28 12:25.)

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