The national unified market, the high-level new action.

Multiple documents this year point to the standardization of investment promotion system.

Central Finance and Economics Commission meeting, once again clear attitude.

Importantly, the first mention of the "unified government behavior scale".

Focused on the integration of procurement, bidding, and investment promotion.

Government behavior is measured against a legal and institutional yardstick.

The main purpose, to create a more level playing field for market players.

01 heavy sound pointed to the investment

Invitation to investment, is to promote investment, spelling out the grasp of the economy.

Governments around the world, fighting for projects, resources, elements.

From the top, can not be left unattended, nor can it be a one-size-fits-all.

China's rapid economic development, investment plays an important role.

These two years, a number of documents have been released to rectify the "in-roll" mess.

From cleaning up tax-related investment, call off all kinds of incentives and subsidies, to the "fund investment" conditions, and then "strengthen the information disclosure of investment".

In fact, has been regulating business investment, government behavior.

Central Finance and Economics Commission meeting, the first focus on anti-involvement, mentioned:

"regulate local investment, strengthen investment information disclosure".

The central financial committee's responsibilities, as if the strategic command.

Mainly responsible for the economic field, is the top designer and direction controller.

The "national unified market" strategy was conceived, decided and promoted by the committee.

"Standardize the local investment", around the world to break the spelling of resource elements, spelling land policy, spelling tax subsidies, "involutional" investment.

In the long run, local governments will be forced to focus on differentiated competition, to create a better business environment, to achieve market-oriented resource allocation, to avoid homogenization of the industrial pile up and waste of public resources.

"Strengthening the disclosure of investment information" is one of the highlights of the meeting.

Future, local government investment policies, processes, commitments, as well as projects that have landed, will also be more open and transparent.

02 Government behavior a ruler to measure

Central Finance and Economics Commission meeting, heavy-handed.

The first mention, "unify the scale of government behavior."

This is also, the focus of the construction of a unified national market.

There are three main areas that deserve to be spotlighted.

Government procurement and bidding; local investment behavior; domestic and foreign trade integration to promote.

It seems that standards will gradually converge around the world to cope with the complex external environment and smooth the path of domestic and foreign trade integration and export to domestic sales.

"Unifying the scale of government behavior" will create a fairer environment for all kinds of business entities to compete in the market.

This unification has at least two meanings.

One is, the unification of the spatial dimension.

No matter which place, no matter which level of government departments, should follow the same code of conduct in market access, fair review, enterprise-related inspections and many other aspects.

The second is, unification in the time dimension.

The continuity of the policies of various departments and localities should not be changed from one day to the next or the new officials should not take care of the old accounts, especially in terms of rigid policies such as market regulation, taxation and environmental protection.

In this way, it is conducive to cracking the excessive "involution" between different regions and promoting the flow of factor resources.

The promotion of the construction of a unified national big market is to open the key blockage that restricts the economic cycle.

Frankly speaking, the government's behavior should also be the focus of governance and regulation.

For example, in the past, some places would set up hidden barriers to attract investment, requiring investee companies to make local purchases, build factories and pay taxes.

Then again, for example, some regions have added unreasonable additional conditions or adopted discriminatory bidding policies when bidding for government procurement.

These are all manifestations of the government's "out of proportion" behavior, artificially creating market segmentation and differential treatment.

The meeting of the Central Finance and Economics Commission (CFEC) mentioned "unclogging the internal circulation".

We believe that promoting the integrated development of domestic and foreign trade and promoting the construction of a unified national market are mutually supportive.

The unified national market is no longer a mere economic proposition, but a scalpel for the management of the involution and a golden key to get out of deflation.

Next, the follow-up to promote the integrated development of domestic and foreign trade, smooth the path of exports to domestic sales, there will be more incremental policy landing.

For foreign trade enterprises, especially processing foreign trade enterprises, exports to domestic sales is not a short-term moment of "safe harbor", but the layout of the domestic market, cultivate independent brand key opportunities.

Expanding the opening up of domestic resources will provide enterprises with more space for market participation, help break down barriers to inter-regional development, change the situation of market segmentation, and promote the integration of domestic and foreign trade development is also of great significance.

Behind these actions, the need to establish a set of "invisible hand" really say the market rules.

It is precisely for this reason that the deep promotion of the construction of a unified market, to put the "unified government behavior scale" to "five unified, an open" in the basic requirements.

03 Enterprise competition re mentioned to go to production capacity

Heavy signal, "to go to production capacity" again out of the lake.

Central Finance and Economics Commission meeting, also focused on:

"Governance of low-priced disorderly competition", "to promote the orderly withdrawal of backward production capacity".

In fact, is the classic recipe for the connotation of supply-side reform.

If you can really thunder, as soon as possible to see the relevant policies on the ground, the opportunity will soon come.

From the point of view of corporate behavior, also in the "involutional" competition.

On the one hand, the "price war", rely on low prices to compete for the market.

On the other hand, engage in "marketing war", regardless of service, quality.

In addition, many companies played the "arbitrary card".

Never consider their own reality, in the blindly follow the trend of chasing industry hot spots in the "volume".

In recent years, often referred to the "new three".

New energy vehicles, lithium batteries and photovoltaic products, strong growth, in the domestic and international markets, promoting the global green transition.

But, since the "new three" has become a hot investment, a large number of enterprises, local influx of the relevant track, the rapid rise in production capacity, low profits or even disappear, "price war" also emerged.

Taking lithium battery, China accounts for 70% of the global production capacity, dominating the entire technology and supply chain.

And lithium iron phosphate core, from 0.8 yuan per kilowatt-hour fell to 0.4 yuan per kilowatt-hour, lithium carbonate from 600,000 tons fell to 60,000 yuan a ton, the second and third tier manufacturers capacity utilization rate has been less than 30%.

Beginning in 2024, the automotive industry is caught in a vicious cycle of "price for volume".

It is true that some car companies have less than 1,000 yuan in profit per car, and are caught in the predicament of "selling a car at a loss".

The entire market, the inventory to sell 24 months, the supplier's checkout cycle of up to 300 days.

The pain of "involution" is essentially the pain of transformation.

For enterprises, the lack of long-termism concept. Do not want to, dare not, will not be in the technological innovation up and down the real effort, only to consider the "make quick money", where the hot where to invest.

In the transformation and upgrading of the time, give up the development of innovation, chose the road of fishing.

For the local, the lack of understanding of local conditions. Neither recognize the boom, nor recognize themselves, blindly on the project, engage in local protection, market segmentation.

In the smooth domestic cycle at the time, did not integrate into the overall development, chose the beggar-thy-neighbor road.

The meeting of the Central Finance and Economics Commission (CFEC), for the first time, focused on anti-internalization.

All over the planning of the "Tenth Five-Year Plan" at the time, targeted sorting out the strengths and weaknesses, and strive to implement a good industrial layout "according to local conditions" requirements.

With this, each industry has a substantial action, is the strict implementation of production cuts, production limits.

Capacity rolled industry, photovoltaic, iron and steel, automobile, cement and other industries out of the big move, the formation of the "anti-roll" consensus.

In the photovoltaic industry, the domestic head of the photovoltaic glass enterprises announced a collective production cut of 30%, to improve the supply and demand structure.

China Cement Association, released "anti-involvement", "stable growth" work recommendations, optimize the direction of the industrial structure.

Some steel mills in the iron and steel industry, also received a notice of emission reduction and production limitations, and actively get rid of the "involutional" competition predicament.

Previously, some automobile companies have come up with a call to stop the "limited time a price", take the initiative to raise prices and other actions. Numerous car companies, have taken the initiative to commit to "pay the account period of no more than 60 days".

All the signs indicate that the major industries have begun to respond positively to the national strategic plan.

Cities are choosing projects and projects are choosing cities.

In a level playing field, companies will choose where to invest based on their own development needs and factors such as the local industrial base and business environment, rather than just being attracted by relevant support.

Wanting to make enterprises feel assured of their trust, localities have to have reliable methods, manageable policies and heart-saving services.

Breaking the involution is not to not compete, but to let the market return to fair competition.