Major players such as Alibaba, the owner of AliExpress and developer of the AI model Qwen, as well as Baidu and companies engaged in instant commerce like Taobao Flash Sale, are in the spotlight.
According to media reports, authorities are concerned that mass discount promotions, free features, and aggressive coupons could negatively impact business profitability and lead to instability in the industry. Regulators emphasize the importance of "rational competition" and warn of potential consequences of dumping.
Recently, competition in the fields of artificial intelligence and e-commerce in China has significantly increased. Companies are striving to lower prices for their AI services and offer free products to expand their market share, which leads to reduced margins and increased costs for subsidizing users.
Although an official ban on discounts has not been implemented, regulators express the need to reduce practices that could destabilize the market and lead to financial losses for companies.
