#Economic Growth #China Market Strategy #Unified Market

China’s Strategic Efforts to Enhance Market Efficiency and Economic Growth

China stands as a super-sized domestic market that is arguably one of its greatest assets. A recent meeting held by the Political Bureau of the Communist Party of China (CPC) emphasized the importance of fully capitalizing on this domestic resource. The aim is to streamline market competition and enhance economic potential by cultivating a unified national market. This initiative not only addresses immediate concerns but also aims at setting the stage for long-term economic stability and growth.

In the first half of 2025, China’s economy recorded a year-on-year growth rate of 5.3 percent, largely fueled by robust domestic demand, which contributed a remarkable 68.8 percent to the overall growth. Despite facing complex external challenges, the resilience of the vast Chinese market has become increasingly evident.

Nevertheless, the path towards optimizing this potential is not without its hurdles. Issues such as chaotic price competition, local governmental conflicts spurred by competitive advantage measures, and industries overly focused on short-term gains remain persistent, posing risks to the domestic economic cycle. To tackle these issues, there is a pressing need to “establish the right practices while abolishing the wrong ones.”

Reassessing Market Rules

For this strategy to succeed, it is vital to carefully identify what practices should be established or eliminated. This element of the strategy points towards a necessary upgrade in market regulations. The establishment of