China issues draft rules to curb food delivery subsidy price wars

Wednesday 17 June 2026 - 11:04

China’s market regulator has released draft rules aimed at tightening control over subsidy practices in the country’s highly competitive food delivery sector, as authorities move to address intensifying price wars among major platforms.

The State Administration for Market Regulation (SAMR) said the proposed measures are designed to prevent “irrational competition” and ensure fair market behavior. The draft rules are open for public consultation until July 17.

Under the proposed framework, food delivery platforms would be prohibited from forcing merchants to participate in subsidy campaigns or from shifting the financial burden of discounts onto them. The rules also target practices deemed unfair, including the use of capital strength to engage in monopolistic behavior or selling products below cost.

The regulator said the objective is to create a more balanced and sustainable competitive environment in a sector that has seen aggressive discounting strategies in recent years, driven by leading companies such as Meituan, Alibaba’s Taobao Shangou, and JD.com’s delivery services.

In response to the announcement, Meituan said it supports the draft regulations and plans to align its operations with the proposed standards. The company stated that clearer rules would help define compliance boundaries for subsidy practices and improve industry order.

Alibaba’s food delivery unit also expressed support for the initiative, noting that it would cooperate with industry stakeholders to promote fair competition and a stable market environment.

The move comes amid ongoing pressure on profitability in China’s instant delivery and e-commerce sectors, where companies have engaged in prolonged price competition to attract users. Despite revenue growth in some areas, several major platforms have reported declining profits due to sustained subsidy spending.

Analysts say the proposed regulations reflect Beijing’s broader effort to rein in excessive competition, stabilize key consumer sectors, and encourage more sustainable business models in the digital economy.

As the consultation period continues, the final version of the rules is expected to shape how China’s food delivery giants structure promotions and compete for market share in the coming years.