Leading players such as Alibaba (owner of the AliExpress platform and developer of the AI model Qwen), Baidu, and other instant shopping services, including Taobao Flash Sale, are in the spotlight.
According to information from publications, Chinese authorities are concerned that mass discounts, free features, and aggressive coupon offers undermine the profitability of companies and pose threats to the stability of the sector. Regulators insist on the need for "rational competition" and warn of the risks of dumping for the market.
Active competition in the field of artificial intelligence and e-commerce in China has increased in recent months. Companies are striving to lower prices on AI services and offer free products to gain a larger market share. This, in turn, leads to reduced margins and increased costs for subsidizing users.
Although there is no official ban on discounts, regulators emphasize the importance of reducing practices that could destabilize the market and lead to financial losses for companies.
