China to Rein In Disorderly Investment in Emerging Sectors

China is set to crack down on “herd behaviour” in investments across emerging sectors and tighten oversight of local government investment promotions, according to the National Development and Reform Commission (NDRC). “Currently, ‘involution’ and disorderly competition appeared in some industries,” said NDRC official Wang Renfei. Although no sectors were explicitly named, analysts expect authorities to focus on autos, batteries, and solar panels — the so-called “new three” growth drivers — now under scrutiny for aggressive price wars. Beijing also aims to strike a better balance between market forces and government oversight by standardising official conduct and clarifying which investment promotion practices are encouraged or restricted. The move aligns with signals from last week’s closely watched Politburo meeting, where top leaders vowed to address “disorderly competition” but showed little urgency to launch major stimulus measures.