What issues is China's regulator investigating in the food delivery market?

The regulator is investigating excessive subsidies and price wars among food delivery platforms.

Why is China cracking down on food delivery competition?

To ensure fair and orderly competition, foster high quality, and establish reasonable pricing.

What is 'involution-style' competition in food delivery?

It refers to intense, often self-defeating competition driven by practices like excessive subsidies and price wars.

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China Cracks Down on Food Delivery Price Wars

9 Jan

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Summary

China's market regulator will investigate food delivery platform competition.
Excessive subsidies and price wars are cited as market issues.
The goal is to foster fair competition and reasonable pricing.

China Cracks Down on Food Delivery Price Wars

China's central government is initiating a comprehensive investigation into the competitive landscape of its food delivery platforms. This action, announced on Friday, January 9, 2026, by the market regulator, targets issues that have led to market distortions.

Concerns have been raised regarding excessive subsidies and aggressive price wars within the sector. The regulator stated these practices have squeezed the real economy and promoted "involution-style" competition, which is detrimental to sustainable growth. The investigation aims to rectify these imbalances.

The State Council's assessment seeks to cultivate a market environment that prioritizes high quality offerings, fair pricing, and robust, healthy competition. This initiative reflects a broader effort to ensure orderly development and consumer benefits in the rapidly evolving digital economy.