Let value lead competition in future

As China enters the 15th Five-Year Plan (2026-30) period, one of the most important economic questions is how to turn competition from a race to the bottom into a driver of innovation, quality and long-term growth.

The current discussion around "anti-involution" should be understood in this context. The problem is not caused by a single factor. It is the combined result of demand pressure, mismatches between effective demand and supply capability, and homogenous competition. At a deeper level, however, the issue is that value has not been fully reflected in pricing.

This is where policymakers should focus. In many sectors, the challenge is not simply how much capacity exists, but whether supply matches the market's real needs. Demand for higher-end, differentiated and system-level solutions remains strong. Yet there is greater supply of products and models that can be copied quickly. The competition is thus mainly on scale and cost. In such a setting, price wars become the easiest option, but also the most damaging one.

Behind this lies another problem: the rules do not sufficiently recognize high-value competition. Buyers can easily identify the lowest price, but it is not that easy to differentiate pricing reliability, service capability, carbon performance, technological sophistication and full life-cycle value. When these qualities are not adequately valued or recognized, companies are pushed toward short-term price competition instead of long-term capability building.

That is why, during the 15th Five-Year Plan period, China is expected to give priority to building a competition and pricing system oriented toward long-term value. In simple terms, the market needs clearer rules that allow good technology, good products and good services to earn good prices.

This requires action in at least two areas.

First, value recognition should be written more clearly into the rules. In industrial policy, financial support, procurement and tendering, greater weight should be given to quality, technical standards, reliability, carbon efficiency and life-cycle cost, rather than allowing lowest-price logic to dominate. This does not mean setting prices administratively. It means improving the incentive structure so that competition moves from simply comparing costs to competing on technology, efficiency and quality.

Second, competition should shift from single-product pricing to system integration solution capability. In sectors such as energy storage, comparing only equipment prices will almost inevitably lead to bloody competition. But if the market also evaluates system efficiency, lifespan, safety and long-term returns, then companies must move from selling products to delivering integrated solutions. That will encourage stronger capabilities in system design, integration, operations and risk management, and help restore competition to a healthier footing.

This is also essential to developing new quality productive forces during the next plan period. China has clear opportunities in areas such as artificial intelligence, low-altitude economy applications, embodied intelligence, semiconductors and satellite internet. These are not only emerging industries; they are potential engines of future productivity and growth. But their development should not be measured by scale and volume alone. What matters more is whether technological progress can be translated into commercial value, industrial upgrading and stronger overall competitiveness.

The same principle applies to Chinese companies going global. In a changing global environment, the most competitive firms will not simply be those that sell products at the lowest level abroad, but those that can truly integrate into the local markets, build local partnerships, contribute technology and create shared value. In that sense, going global is not only a business expansion strategy. It is also a real test of whether enterprises can move beyond price competition and compete on comprehensive capability, including brand and value.

Green development introduces another important dimension. As global trade rules become more closely linked with carbon performance, green commitments must be backed by credible evidence. For export-oriented companies, the key is to build a verifiable carbon-data and compliance chain around products, with consistent methodologies, clear documentation and traceable proof. Only in this way can green competitiveness become a real market advantage.

Looking ahead, China's next stage of growth should not be defined by low-price competition. It should be defined by a market environment in which innovation, quality, service and sustainability are properly recognized and rewarded. If the rules can better reflect value, then competition will not become weaker. It will become healthier, more efficient and more capable of supporting high-quality development.

Jiang Ying is chair of Deloitte China and a national political advisor. This is an excerpt of the interview with China Daily reporter Yao Yuxin.

The views don't necessarily represent those of China Daily.

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