Recent policies implemented by Chinese President Xi Jinping have contributed to a recent increase in price wars across various sectors. The government’s focus on bolstering domestic manufacturing and reducing trade deficits has, in some instances, encouraged manufacturers to compete aggressively on price points. This competitive pressure is impacting retailers and consumers, leading to a noticeable shift in market dynamics. While these actions are intended to stimulate economic growth, they are also creating uncertainty and potential instability within the supply chain. The long-term consequences of this strategy remain to be fully assessed.
Credits: Finance & economics