This call affects major companies such as Alibaba (owner of AliExpress and developer of the AI model Qwen), Baidu, as well as instant commerce services, including Taobao Flash Sale.
According to foreign publications, authorities are concerned that mass discounts, free services, and aggressive coupon promotions may undermine the financial stability of businesses and create risks for the sustainable development of the industry. Regulators insist on the need for "rational competition" and warn of the negative consequences of dumping for the market.
In recent months, there has been a rise in competition in the fields of artificial intelligence and e-commerce in China. Companies are lowering prices on AI services and offering free products to increase their market share, which in turn leads to reduced margins and increased costs for subsidizing customers.
Although there have been no official bans on discounts yet, regulators emphasize the importance of reducing practices that could destabilize the market and lead to financial losses for companies.
