Beijing has stepped up efforts to curb price wars between China’s largest technology groups, launching a wave of regulatory probes as policymakers take action against deflationary pressures in the economy.
The market regulator said this week it was investigating Ctrip, China’s leading travel booking platform, after launching probes into food delivery businesses run by tech groups Meituan and Alibaba last week.
Beijing’s enforcement activity underscores the government’s urgency to rein in aggressive price cutting as companies slash prices to compete for market share. The campaign against “involution” — the term used by Chinese media to describe hyper competition — is in response to persistent deflation, with producer prices declining every month for more than three years as supply outstrips domestic demand.