Europe’s Top Business Lobby in China Urges End to Price Wars

Europe’s top business lobby in China urged Beijing to address price wars and unsustainable competition as the country readies its next five-year plan — adding to pressure from the US over the matter.

While the nation’s consumption is growing, a key issue “is that manufacturing output has grown faster,” the European Union Chamber of Commerce in China wrote in an annual position paper published on Wednesday. “Involution, expanding inventories, pressure on profit margins, decreasing asset utilization and pressure to export are all natural consequences of this mismatch.”