China urges companies to not take price-cutting playbook to US

Chinese Commerce Minister Wang Wentao said during a meeting in New York with Chinese company representatives that China and the U.S. “have reached consensus on a number of issues after several rounds of economic and trade consultation," according to a statement by the ministry late Wednesday. This will help to “stabilize economic and trade relations between the two countries," he said.

Wang made the remarks at a meeting on Tuesday with over a dozen Chinese firms in industries including e-commerce, pharmaceuticals and telecommunications.

Further, Chinese companies should avoid extending their price wars aboard, Wang said.

Chinese regulators have called on companies in recent months to rein in excessive competition and extreme discounting practices.

Chinese e-commerce firms such as Temu and Shein became known in the U.S. for their low prices, made possible largely by China’s supply chain. That advantage has been eroded, however, after the Trump administration scrapped a rule that allowed low-value goods to enter the U.S. duty-free.

Discounting remains central to the business book at home for Chinese tech platforms that dominate e-commerce and food delivery. In the U.S., a single delivery can easily cost $10, while in China consumers can get a beverage brought to their door for as little as 1 cent, as tech giants use steep discounts to lure consumers and grab market share.

Officials have repeatedly warned against “disorderly" competition that has eaten into food-delivery companies’ profit margins and worsened deflationary pressures.

Beyond food delivery and e-commerce, Beijing has said it seeks to avoid overcapacity in domestic sectors such as automobiles and solar cell materials.

The commerce ministry attaches great importance to the development of Chinese enterprises in the U.S. and “strives to stabilize China-U.S. economic and trade cooperation," Wang said at the New York meeting.

Write to Tracy Qu at tracy.qu@wsj.com