National Development and Reform Commission: Price supervision, inspection, investigation and punishment of price violations will be carried out in accordance with the law

The Zhitong Finance App learned that recently, the National Development and Reform Commission and the General Administration of Market Supervision jointly issued the “Notice on Matters Relating to Cost Accounting for Low Prices and Disorderly Competition for Important Industrial Products” (hereinafter referred to as the “Notice”). Relevant responsible comrades from the National Development and Reform Commission answered questions from reporters on issues related to the “Notice”. In order to ensure that the “Notice” is in place, we will focus on three areas of work. The first is to strengthen market monitoring. Focus on important industrial product production areas where the problem of disorderly competition at low prices is prominent, closely monitor market changes such as related prices and costs, and promptly discover problem clues. The second is to strengthen industry self-discipline. Guide relevant agencies to explore and formulate industry cost accounting group standards, provide references for operators to operate in accordance with the law, and further standardize the competitive order of the industry. The third is to strengthen supervision and enforcement. Reminders and warnings are issued to operators with prominent problems in due course, and when necessary, cost investigations are carried out, related costs are calculated, and operators are guided to consciously regulate price behavior. Carry out price supervision and inspection in accordance with law, investigate and punish price violations, and maintain a good market price order.

The original text is as follows:

National Development and Reform Commission General Administration of Market Supervision

Notice on matters relating to cost accounting for low prices and disorderly competition for important industrial products

Revised Price [2026] No. 1303

Provincial, autonomous regions, municipalities directly under the Central Government and the Xinjiang Production and Construction Corps Development and Reform Commission and Market Supervision Bureau (department, committee):

In order to thoroughly implement the spirit of the Fourth Plenary Session of the 20th CPC Central Committee, earnestly implement the arrangements of the Central Economic Work Conference, and further standardize the market price order, in accordance with the “Price Law of the People's Republic of China” and other laws and regulations and the relevant requirements of the “Notice on Controlling Disorderly Price Competition and Maintaining a Good Market Price Order”, matters relating to cost accounting for low and disorderly competition for important industrial products are hereby notified as follows.

1. The National Development and Reform Commission and the General Administration of Market Regulation focus on important industrial product production areas where the problem of disorderly competition at low prices is prominent, warn and warn operators suspected of disorderly competition at low prices, organize and carry out cost investigations when necessary, and account for operator-related costs.

2. In principle, cost accounting is based on the individual cost of the operator producing a specific product. When it is impossible to calculate individual costs, refer to the industry average cost of the product and consider a certain amount of decline for accounting.

3. Individual costs refer to the unit cost of a specific product produced by an operator. The accounting of individual costs of operators shall adhere to the principles of legality, relevance and rationality, and comply with the following requirements:

(1) Expenses included in costs shall be based on financial reports and related statements audited by an accounting firm. If unaudited during the accounting period, they shall be based on original documents and accounts with complete procedures provided by the operator. If there is an unreasonable situation in the cost accounting method used by the operator or the recorded data, reasonable methods and standards may be used to make adjustments. The associated costs and charges should match what is covered in the product's sales price.

(2) Where the operator has a single type of product, in principle, the operator as a whole is the object of accounting; if the operator has many types of products and the accounting of the product business segment is clear, the relevant product business segment may be the object of accounting.

(3) The time frame for accounting is determined by taking into account factors such as industry characteristics, development stage, raw material procurement, product production and sales cycle.

4. For operators whose actual capacity utilization rate is much lower than the average capacity utilization rate of the industry, give due consideration to the impact of capacity utilization on individual costs.

5. The average cost of the industry is calculated and determined by relevant agencies such as industry associations under the guidance of the National Development and Reform Commission, the General Administration of Market Supervision, and industry authorities. Industry average cost estimation can be determined by means of a survey or sample survey; when using a sample survey method, factors such as industry product categories, operator size, production area distribution, technical routes, and capacity utilization rates should be comprehensively considered to select representative operators. For industries with large regional cost differences, the average cost of the industry can be measured regionally.

6. Under the unified guidance of the country, all provincial development and reform departments and market supervisory departments should strengthen ties with industry authorities, take into account the rules of industrial development and the characteristics of industry production and operation, do relevant work, control disorderly competition at low prices according to law and regulations, and effectively maintain market price order.

National Development and Reform Commission

General Administration of Market Regulation

September 3, 2026

Relevant responsible comrades from the National Development and Reform Commission answered questions from reporters on the “Notice Concerning Matters Relating to Low Prices and Disorderly Competition Cost Accounting for Important Industrial Products”

Recently, the National Development and Reform Commission and the General Administration of Market Supervision jointly issued the “Notice on Matters Relating to Cost Accounting for Low Prices and Disorderly Competition for Important Industrial Products” (hereinafter referred to as the “Notice”). Relevant responsible comrades from the National Development and Reform Commission answered questions from reporters on issues related to the “Notice”.

1. What is the background behind the publication of the “Notice”?

The Fourth Plenary Session of the 20th CPC Central Committee proposed a comprehensive rectification of “internal rolling” competition, calling for the formation of a market order with high quality, high prices, and healthy competition. The sixth meeting of the Central Committee on Finance and Economics emphasized the regulation of disorderly competition among enterprises at low prices according to law and regulations. The “Opinions of the General Office of the CPC Central Committee and the General Office of the State Council on Improving Price Control Mechanisms” proposes the comprehensive use of announcements, guidelines, reminders, administrative guidance, and cost investigations to promote business entities to operate in accordance with the law. Currently, the results of rectifying “internal rolling” competition continue to show, and the competitive ecology in key industries has improved, but 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. In the process of controlling disorderly competition at low prices, various aspects reflect the principles of current price laws and regulations on costs, and it is recommended that cost accounting requirements be further clarified. Based on the need to guide operators to standardize business practices, strengthen regulation and supervision, and maintain a good market price order, the National Development and Reform Commission and the General Administration of Market Supervision have researched and formulated the “Notice” on the basis of thorough investigation and research and full listening to opinions.

2. What is the policy goal of issuing the “Notice”?

The “Notice” was issued with the aim of consolidating the institutional foundation for controlling disorderly competition at low prices, promoting operators in important industrial product production fields to operate in accordance with the law, and to standardize the market price order through diversified co-governance and collaboration.

The first is to consolidate the foundation of the system. The Price Law stipulates that operators must not carry out unfair price acts such as low price dumping. The regulations on stopping low price dumping put forward requirements for accounting for individual costs and average industry costs, but there are no detailed rules on how to calculate them. The “Notice” was issued with the aim of clarifying the relevant regulations on cost accounting and consolidating the institutional foundation for controlling disorderly competition at low prices.

The second is to promote operations in accordance with the law. Controlling disorderly competition at low prices requires giving full play to the self-regulatory role of operators, but it is necessary to strengthen guidance for operators on how to strictly abide by relevant regulations such as price laws and operate in compliance. The “Notice” was issued with the aim of providing cost accounting guidelines for operators in important industrial product production fields, encouraging operators to carry out business activities in accordance with the law and consciously regulate price behavior.

The third is to standardize the market order. Maintaining a good market price order is conducive to giving full play to the decisive role of the market in resource allocation and giving better play to the role of government. The “Notice” was issued to strengthen deployment and guidance on efforts to control disorderly competition at low prices in various regions, thereby promoting the transformation of relevant industries from “price competition” to “competition for quality and innovation”, promoting the rational formation of market prices, and creating a market environment with high quality and high prices.

3. What principles does the formulation of the “Notice” adhere to?

The “Notice” adheres to goal orientation and problem orientation, focuses on the cost accounting issues of low price and disorderly competition in important industrial product production fields, and clearly stipulates the accounting basis, covered content, accounting requirements, influencing factors, etc. of operators' production costs, guiding operators to better clarify behavioral boundaries and avoid implementing disorderly competition at low prices. The enactment of the “Notice” adheres to the following principles.

The first is to follow the laws of the economy. Price is the “bull's nose” of resource allocation efficiency under market economy conditions. Determining price by the market is the key for the market to play a decisive role in resource allocation. The “Notice” respects operators' right to independent pricing, does not interfere with operators' independent pricing behavior, focuses on important industrial product production areas where the problem of low price and disorderly competition is prominent, and promotes operators to correctly account for costs and operate in accordance with the law.

The second is to support fair competition. Price competition is one of the important methods of market competition, but disorderly competition will have a negative impact on industry development, product innovation, quality and safety, etc. The “Notice” uses cost accounting as an important starting point, based on the individual costs of operators and the average cost of the industry as a reference. By clarifying cost accounting principles, the “Notice” strengthens prior guidance and supervision during and after the fact, providing strong support for strengthening regulation and supervision and promoting fair competition and healthy competition.

The third is to consider the characteristics of the industry. There are large differences in the stages of industry development, competitive nature of the market, and production and operation conditions of operators in different industrial product production fields. Formulating cost accounting rules must take into account history and current situation, and fully consider the characteristics of the industry. The “Notice” requires that the time frame for cost accounting be determined by taking into account factors such as industry characteristics, stage of development, procurement of raw materials, product production and sales cycle, etc.; duly consider the regulations on the impact of capacity utilization on individual costs, and fully respect the historical situation and operating reality of the operator.

Fourth, strengthen policy coordination. Carrying out cost accounting involves policy requirements in many areas. The provisions of the “Notice” are closely linked to industrial policies, industry management, and accounting standards to ensure operability and implementation. All regions are required to strengthen ties with industry authorities, take into account the rules of industrial development and the characteristics of industry production and operation, and do a good job of cost accounting.

4. What are the main contents of the Notice?

The “Notice” clarifies the subject, content and method of cost accounting.

The first is the subject of accounting. According to the requirements of the “Notice”, the National Development and Reform Commission and the General Administration of Market Supervision shall 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. Industry associations and other relevant agencies can estimate the average cost of the industry under the guidance of the National Development and Reform Commission, the General Administration of Market Supervision, and industry authorities. Operators can account for their own individual costs in accordance with the requirements of legally compliant operations.

The second is the content of accounting. According to the Price Law and regulations on stopping low price dumping, it is the operator's individual costs that need to be calculated to identify disorderly competition at low prices. To this end, the “Notice” proposes that cost accounting is based, in principle, on the individual costs of the operator producing specific products. Considering that the individual costs of some operators cannot be directly calculated, the “Notice” stipulates that the average cost of the product in the industry can be used for accounting by referring to the average cost of the product in the industry and taking into account a certain amount of decline.

The third is the accounting method. The “Notice” suggests that the accounting of the operator's individual costs should be based on audited or completed accounting data provided by the operator, that the relevant costs and expenses should match what is covered by the product sales price, and that the impact of capacity utilization on individual costs should be taken into account. The average cost of an industry can be calculated using a survey or sampling method, and industries with large regional cost differences can be estimated regionally.

5. What are the arrangements for implementing the Notice?

In order to ensure that the “Notice” is in place, we will focus on three areas of work.

The first is to strengthen market monitoring. Focus on important industrial product production areas where the problem of disorderly competition at low prices is prominent, closely monitor market changes such as related prices and costs, and promptly discover problem clues.

The second is to strengthen industry self-discipline. Guide relevant agencies to explore and formulate industry cost accounting group standards, provide references for operators to operate in accordance with the law, and further standardize the competitive order of the industry.

The third is to strengthen supervision and enforcement. Reminders and warnings are issued to operators with prominent problems in due course, and when necessary, cost investigations are carried out, related costs are calculated, and operators are guided to consciously regulate price behavior. Carry out price supervision and inspection in accordance with law, investigate and punish price violations, and maintain a good market price order.

This article was edited by “National Development and Reform Commission”; Zhitong Finance Editor: Li Fu.