China Tech Giants Tumble Amid Growing Fears of Price Wars
- JD drops as much as 11% in US; Golden Dragon Index falls 2.5%
- Renewed competition is stoking concerns over industry margins
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China’s internet firms are revving up efforts to outdo each other since Beijing began to wind back its bruising crackdown on the tech sector, spurring an abrupt surge in competition that’s threatening margins and spooking investors.
A battle is brewing as companies that laid low or sought to limit expansion during the years-long crackdown now feel the shackles coming off. Beijing hasn’t sanctioned a return to the free-for-all that marked the sector’s pre-Covid heyday — but a flurry of aggressive campaigns announced by Big Tech in recent weeks is reviving the specter of debilitating price wars.