"Chinese companies have been making inroads into the US economy, with brands like e-commerce giant Temu and Starbucks challenger Luckin Coffee breaking through with American consumers. Beijing has taken notice - and it doesn't want its firms to repeat the bruising price wars they've waged at home. On Tuesday, Commerce Minister Wang Wentao met with representatives from over 10 Chinese companies in New York and urged them to avoid cutthroat competition, according to a statement from the ministry."
"He urged them to support one another in their expansion efforts but to "oppose the externalization of involution," referring to a term used in China to describe relentless, unsustainable competition. Wang's comments come as US consumers have become increasingly familiar with budget-friendly Chinese upstarts like Luckin Coffee, Temu, and Miniso. Luckin's regular retail prices are comparable to Starbucks, but the newcomer offers significant promotional discounts."
Commerce Minister Wang Wentao met with representatives from over ten Chinese companies in New York and urged them to avoid cutthroat competition while supporting one another in expansion. Chinese brands such as Temu, Luckin Coffee, and Miniso have gained US consumer traction through budget-friendly pricing and heavy promotions. Beijing has pledged to curb aggressive price cutting at home to stabilize an economy still affected by a yearslong property crisis, and top leadership vowed to curb "low-price and disorderly competition among enterprises." Authorities have already targeted sectors like food delivery, where rock-bottom offers fueled unsustainable competition and deflationary pressure. Big price cuts abroad could also inflame US-China trade tensions.
Read at Business Insider
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