Summary of Key Points
The construction of a national unified market has achieved phased results (the framework has been established, and chaotic practices have been initially curbed). Recently, there has been a new round of intensive efforts to address issues such as illegal subsidies by local governments, excessive competition in attracting investment, and insufficient fair market competition. Measures include the issuance of negative lists, standardization of behavioral boundaries, and strengthening review mechanisms in sectors like steel, platform economy, and government procurement to combat these problems. The next step will be to establish an annual evaluation system to further advance the development of systems and infrastructure, thereby supporting high-quality economic growth.
Detailed Explanation
1. Phased Results: The Framework is in Place, and Chaotic Practices are Being Addressed
The foundational legal and regulatory framework for the national unified market has been largely established. For example, the number of negative lists restricting market entry has decreased from 117 in 2022 to 106 in 2025, removing 11 barriers to market entry, making it easier for companies to enter the market. In 2025, 57,000 cases involving corporate-related law enforcement issues were investigated, helping companies recover nearly 29 billion yuan in losses. Local governments have also eliminated more than 38,000 policy documents that could hinder the unified market.
Efforts to address six prominent issues (such as low-price competition, chaotic government procurement practices, and excessive investment attraction) have shown initial success. For instance, the competitive practice of offering subsidies to attract businesses has been largely curbed, with everyone realizing that a unified market is more beneficial than acting independently.
2. Local Government Behavior: Setting Limits to Regulate Subsidies and Investment Attraction
Some local governments have provided illegal financial subsidies (such as offering excessive land incentives or cash refunds) to attract businesses, creating unfair competition. The central government will now issue a negative list of local fiscal subsidies specifying which subsidies are not allowed and will use systems to monitor and penalize violations. Local governments must also align their practices with this list.
In the area of investment attraction, a list of encouraged and prohibited actions will be established. For example, practices like offering zero land prices or unlimited tax refunds will no longer be permitted; rewards will be given for compliant behavior, while accountability will be pursued for non-compliance. Local governments will also be guided to develop in different areas, such as focusing on new energy or high-end manufacturing, rather than competing for the same types of businesses.
3. Fair Competition: Incorporating Principles into Assessments
Fair competition reviews are designed to prevent governments from introducing policies that favor local companies at the expense of others (for example, requiring the use of local products for local projects). Reviews will be conducted at the national, provincial, municipal, and county levels, and the results will be used in assessments. Special initiatives will be launched to help address shortcomings at the grassroots level (for example, providing training for counties that lack the necessary capabilities).
In short, any government policy related to the market must first be questioned: “Is this fair? Will it help local companies at the expense of others?”
4. Focusing on Specific Areas to Combat Excessive Competition
Efforts to combat excessive competition are being made in several key areas:
- Steel Industry: Practices such as dumping products below cost and maliciously bidding have been addressed. Associations have joined forces with over 40 organizations to advocate for resistance, and efforts have been made to standardize exports to avoid trade disputes.
- Platform Economy: A “anti-excessive competition alliance” has been formed to regulate subsidies for food delivery services (for example, prohibiting unlimited cash subsidies to attract users) and to encourage platforms to reduce fees for small businesses.
- Government Procurement: Revised draft regulations aim to address issues like low-price, unregulated competition (for example, some companies bid extremely low to win contracts but provide poor-quality products). The focus has shifted from simply saving money to ensuring fairness and quality, allowing all types of companies to compete on an equal footing.
5. Next Steps: Establishing a Evaluation System and Deepening Four Key Areas
The main goals for the future include:
- Establishing an evaluation system to assess the effectiveness of the unified market construction annually.
- Deepening four key areas: Improving regulations, enhancing market infrastructure (such as logistics and information networks), unifying rules in key sectors (such as automotive and energy), and addressing persistent issues (such as local protectionism).
The ultimate goal is to create a national market where resources can flow freely, companies can compete fairly, and the economy can grow sustainably.
In One Sentence
The construction of a national unified market is not about a one-size-fits-all approach. Instead, it involves regulating government behavior, combating excessive competition, and ensuring fairness, all with the aim of enabling companies to operate fairly across the country and promoting overall economic health.