On the 10th, the “Notice Concerning Matters Relating to Cost Accounting for Low Prices and Disorderly Competition for Important Industrial Products”, jointly issued by the National Development and Reform Commission and the General Administration of Market Supervision, was announced to the public. Currently, the results of China's rectification of “internal rolling” competition are continuously showing, and the competitive ecology in key industries has improved. However, irrational competition is still prominent in some industrial product production fields, disrupting normal production and operation order, which may lead to bad money driving out good money, which is not conducive to healthy economic development. Experts say that in the face of “internal rolling” competition, regulations often have problems such as difficulties in identification and characterization. After accurately grasping the individual costs of key industrial products and the average cost of the industry, it is possible to accurately identify the irrational competitive behavior of enterprises. This provides a quantifiable, comparable, and traceable regulatory benchmark for rectifying “internal rolling” competition. The notice requires that the National Development and Reform Commission and the General Administration of Market Supervision organize and carry out cost surveys when necessary to account for operator-related costs. Each provincial development and reform department and market supervision department shall carry out relevant work under the unified guidance of the country.

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