On October 9th, the National Development and Reform Commission and the State Administration for Market Regulation recently issued a notice on the governance of disorderly price competition and the maintenance of a good market price order. According to current laws and regulations, the announcement proposes multiple governance measures based on a combination of pre guidance and post supervision, including conducting research and evaluation of industry average costs, issuing reminders and warnings, and strengthening regulatory enforcement. The announcement proposes that operators should follow the principles of fairness, legality, and good faith, based on production and operation costs and market supply and demand conditions, exercise their independent pricing power in accordance with the law, consciously maintain market price order, and jointly create a fair and orderly competition market environment. The relevant person in charge of the National Development and Reform Commission introduced that price competition is one of the important ways of market competition. In the socialist market economy, the role of the market mechanism in rational allocation of resources is based on the normal functioning of the price mechanism, which in turn is conditional on healthy price competition. On the premise of protecting the independent pricing rights of operators, the announcement adopts a combination of pre guidance and in-process and post supervision, and adopts measures such as researching and evaluating industry average costs, strengthening price supervision, and regulating bidding and tendering behavior to maintain a fair competitive market environment. The announcement proposes that for key industries with prominent problems of disorderly price competition, industry associations and other relevant institutions can conduct research and evaluation of industry average costs under the guidance of the National Development and Reform Commission, the State Administration for Market Regulation and industry regulatory authorities. The above-mentioned person in charge introduced that carrying out this work can play three roles: firstly, providing reference for operators to set reasonable prices. Operators can optimize pricing strategies, set reasonable prices, and regulate pricing behavior based on their own costs and industry average costs. This does not affect the operator's ability to set prices independently in accordance with the law. The "below cost" involved in unfair pricing behavior refers to being below the operator's own cost. The second is to guide operators to improve their production and operation management. Operators can understand the overall situation of the industry, further optimize production and operation, promote quality improvement and upgrading, and provide consumers with reasonably priced goods and services. The third is to evaluate the competitive situation in the industry. By comparing industry average costs and market prices, it is possible to more accurately monitor and evaluate industry competition, providing reference for macroeconomic regulation. The state supports and encourages normal market competition, and proposes three regulatory measures for operators engaged in disorderly price competition. ”The above-mentioned person in charge stated that one is to remind and warn. Remind and warn operators suspected of disorderly price competition, requiring them to consciously regulate their price behavior and strictly abide by the bottom line of price competition. The second is regulatory enforcement. Pay special attention to operators who fail to regulate their pricing behavior after being reminded and warned. If necessary, conduct cost investigations and price supervision inspections. If any illegal or irregular pricing issues are found, they will be investigated and dealt with in accordance with the law. The third is punishment for dishonesty. Give full play to the role of credit supervision and implement punishment for dishonesty in accordance with laws and regulations. In terms of regulating bidding and tendering behavior, the announcement clearly states that operators should strictly abide by the provisions of the "Bidding and Tendering Law of the People's Republic of China" and the "Implementation Regulations of the Bidding and Tendering Law of the People's Republic of China", consciously regulate bidding and tendering behavior, and not bid below cost to ensure product and service quality. The person in charge stated that the above-mentioned costs refer to the operator's own costs. If the operator's bid price is lower than the industry average cost but higher than their own cost, it does not belong to the bidding that should be rejected. In addition, regarding how to effectively implement the announcement, the above-mentioned person in charge stated that the National Development and Reform Commission and the State Administration for Market Regulation will guide localities to govern disorderly competition among enterprises in accordance with the basic ideas and key measures proposed in the announcement in accordance with the law and regulations. Specifically, one is to carry out policy promotion. Surrounding the governance of disorderly price competition, we will deepen policy promotion, remind operators to operate in accordance with the law and regulations, improve product quality and service levels, and maintain a good market price order. The second is to promote industry self-discipline. Strengthen pre guidance, fully leverage the role of industry associations, promote key enterprises to take the lead in complying with legal and regulatory requirements, and consciously regulate price behavior. The third is to strengthen market monitoring. Closely monitor the operation of market prices and industry competition, and promptly identify clues to disorderly price competition. The fourth is to strengthen supervision and law enforcement. Implement the regulatory measures proposed in the announcement, investigate and punish price violations in accordance with the law, and maintain a fair competitive market environment. (New Society)