Draft to amend price law unveiled

China unveiled the draft of an amendment to its price law on Thursday for seeking public opinions, marking a significant step in strengthening market supervision, deterring unfair pricing practices, and reinforcing the country's push toward a more efficient and high-quality economic structure.

Experts said the move sends a clear signal that China is committed to fostering a market environment that encourages fair competition, as the country adapts to evolving market dynamics and increasing international uncertainty.

The document, jointly drafted by the National Development and Reform Commission and the State Administration for Market Regulation on Thursday, consists of 10 articles with a key focus on improving regulations related to government pricing, further clarifying the criteria for identifying unfair pricing behavior, and strengthening legal accountability for price-related violations.

Guo Liyan, deputy director of the Chinese Academy of Macroeconomic Research's Economic Research Institute, said that in a socialist market economy, the price mechanism plays an important role in optimizing resource allocation and balancing supply and demand.

"The draft amendment, particularly the improvement of criteria for identifying unfair pricing behaviors such as low-price dumping, will help better protect the legitimate rights of consumers and businesses, and promote healthy economic development," she said.

According to Guo, amid rising international uncertainties, reinforcing fair, just and lawful price competition through legislation "will enhance the appeal and influence of China's unified national market, thereby providing a sound pricing environment to strengthen domestic economic circulation".

The draft clarifies that low-price dumping not only applies to goods but also to services, and the responsible parties have been expanded from sellers in transactions to third parties that set pricing rules, thereby providing a legal basis for stronger enforcement against low-price dumping and efforts to curb involution-style competition.

Guo said: "If operators engage in unfair pricing, causing prices to deviate from supply-demand fundamentals and cost structures, this could undermine the entire pricing mechanism and trigger negative chain reactions."

Meng Yanbei, a professor at Renmin University of China's Law School, highlighted a major breakthrough in the draft — the transformation of government pricing to more adaptive rule-based mechanisms.

"One highlight of the amendment is the recognition that government pricing can shift from setting price levels to formulating pricing mechanisms," Meng said.