China's NDRC holds meeting with enterprises to gather "15th Five-Year Plan" opinions and promote rectification of involution competition

China's NDRC holds meeting with enterprises to gather "15th Five-Year Plan" opinions and promote rectification of involution competition

The National Development and Reform Commission (NDRC) of China recently convened a meeting with key enterprises to gather opinions on the "15th Five-Year Plan" and promote the rectification of involution competition within the new energy vehicle (NEV) industry. The meeting, chaired by Premier Li Keqiang, emphasized the need for high-quality development and effective regulation of the NEV sector [1].

The State Council meeting highlighted the importance of addressing irrational competition, cost investigations, price monitoring, and product consistency in production. The government aims to improve long-term mechanisms for fair competition and encourage technological innovation and quality improvement among NEV manufacturers. This intervention signals a tough stance against what the government perceives as "irrational competition" in the industry [1].

The meeting also underscored the need for self-discipline within the industry and the importance of leveraging standards to guide industrial upgrading. The government plans to foster a more competitive environment by promoting technological innovation and quality improvement among enterprises [1].

This meeting comes amidst broader geopolitical developments, including potential delays in the US-China tariff deadline and a possible summit between President Trump and Chinese President Xi Jinping. These geopolitical factors may influence the overall economic and trade relationship between the two countries [2].

The NDRC's focus on the "new development pattern" and the need for self-reliance in technological innovation is a key theme in recent government communications. The NDRC has emphasized the importance of achieving independent technological capabilities and overcoming barriers in critical fields such as semiconductors and foundational software [3].

The meeting aligns with the broader goals outlined in the NDRC's essay titled "Accelerate the Formation of the New Development Pattern," which emphasizes the need for high-level self-reliance and self-strengthening in scientific and technological innovation [3].

In summary, the NDRC's meeting with enterprises marks a significant step in China's efforts to rectify involution competition and promote high-quality development in the NEV industry. The government's focus on technological innovation, industry self-discipline, and long-term mechanisms for fair competition reflects its commitment to addressing the challenges and opportunities in this sector.

References:
[1] https://sinocism.com/p/price-controls-coming-for-evs-nvidia
[2] https://sinocism.com/p/trump-us-china-tariff-deadline-delay
[3] https://sinocism.com/p/ndrc-essay-new-development-pattern