Translated by ChatGPT, edited by Sinocism.com.

On September 10, the National Development and Reform Commission and the State Administration for Market Regulation announced that they had recently jointly issued the Notice on Matters Concerning Cost Accounting for Disorderly Low-Price Competition in Important Industrial Products (the “Notice”). Focusing on sectors producing important industrial goods where disorderly low-price competition is pronounced, it specifies the form, basis and requirements for cost accounting and provides clear guidance for carrying out that work.

9月10日，国家发展改革委、市场监管总局发布消息，已于近日联合印发《关于重要工业品低价无序竞争成本核算有关事项的通知》（以下简称《通知》），聚焦低价无序竞争问题突出的重要工业品生产领域，明确了成本核算形式、核算基础、核算要求等有关事项，为做好成本核算工作提供清晰指引。

An NDRC official said that efforts to rectify “involution-style” competition are showing growing results and the competitive environment in key industries has improved, but irrational competition remains relatively prominent in some industrial-goods sectors. This disrupts normal production and business operations, could allow bad actors to drive out good ones, and is detrimental to healthy economic development. In addressing disorderly low-price competition, various parties have said that the provisions on costs in existing price laws and regulations are relatively general and suggested further clarifying cost-accounting requirements. To guide business operators in standardizing their conduct, strengthen regulation and supervision, and maintain sound market pricing order, the two agencies studied and formulated the Notice after conducting in-depth research and extensively soliciting opinions.

国家发展改革委相关负责人表示，当前，整治“内卷式”竞争成效不断显现，重点行业竞争生态有所改善，但部分工业品生产领域非理性竞争仍较突出，扰乱正常的生产经营秩序，可能导致劣币驱逐良币，不利于经济健康发展。在治理低价无序竞争过程中，各方面反映现行价格法律法规关于成本的规定较为原则，建议进一步明确成本核算要求。基于引导经营者规范经营行为、加强调控监管、维护良好市场价格秩序的需要，两部门在深入调查研究、充分听取意见基础上，研究制定了《通知》。

The Notice states that cost accounting should, in principle, be based on an operator’s individual cost of producing a specific product. When individual costs cannot be calculated, the product’s industry-average cost should be used as a reference, with an appropriate downward adjustment. Calculating individual cost must follow the principles of legality, relevance and reasonableness. Expenses included in cost should be based on financial reports and related statements audited by an accounting firm, and the relevant costs and expenses should correspond to what is covered by the product’s sales price.

《通知》明确，成本核算原则上以经营者生产特定产品的个别成本为基础，在无法核算个别成本时，参考该产品的行业平均成本并考虑一定下浮幅度进行核算。核算个别成本应坚持合法性、相关性、合理性原则，计入成本的费用应以经会计师事务所审计的财务报告和相关报表为基础，相关成本费用应与产品销售价格涵盖的内容相匹配。

For operators whose actual capacity-utilization rates are substantially below the industry average, the effect of capacity utilization on individual cost should also be appropriately considered. Industry-average costs will be measured and determined by industry associations and other relevant bodies under the guidance of the NDRC, SAMR and competent industry departments. Industries with large regional cost differences may calculate averages by region.

同时，对实际产能利用率大幅低于行业平均产能利用率的经营者，适当考虑产能利用率对个别成本的影响。行业平均成本由行业协会等有关机构，在国家发展改革委、市场监管总局和行业主管部门指导下测算确定，区域成本差异较大的行业可分区域测算。

Cost accounting is now becoming a common yardstick in the deeper campaign to rectify “involution-style” competition. Previously, SAMR issued Compliance Guidelines for Pricing Conduct in the Automotive Industry, specifying that automakers may not set actual ex-factory prices below production cost for the purpose of squeezing out competitors or monopolizing the market. In August, the China Association of Automobile Manufacturers issued the Rules for Calculating Complete-Vehicle Costs in China’s Automotive Industry, unifying the accounting standards for vehicle revenue and costs.

目前，成本核算正成为深入整治“内卷式”竞争的通用标尺。此前，市场监管总局发布《汽车行业价格行为合规指南》，明确车企不得以排挤竞争对手或独占市场为目的使实际出厂价格低于其生产成本。今年8月，中国汽车工业协会发布《中国汽车行业整车成本测算规则》，统一了整车收入与成本的核算口径。

From complete vehicles to a broader range of important industrial goods, cost accounting is being used to draw a baseline for competition and push relevant industries to shift from “competing on price” to “competing on quality and innovation.”

从整车到更广泛的重要工业品，以成本核算划定竞争底线，推动相关行业从“拼价格”转向“拼质量、拼创新”。

The NDRC official said the Notice is goal- and problem-oriented. It focuses on cost accounting for disorderly low-price competition in important industrial-goods sectors and clearly specifies the basis, scope, requirements and influencing factors used to calculate operators’ production costs. Its purpose is to help operators better understand the boundaries of permissible conduct and avoid disorderly low-price competition. Next, relevant departments will strengthen market monitoring, industry self-discipline, regulation and law enforcement; issue reminders and warnings to operators with serious problems when appropriate; conduct cost investigations when necessary; guide operators to voluntarily standardize their pricing conduct; and jointly preserve a market order characterized by fair and healthy competition.

国家发展改革委相关负责人表示，《通知》坚持目标导向、问题导向，聚焦重要工业品生产领域低价无序竞争成本核算问题，对经营者生产成本的核算基础、涵盖内容、核算要求、影响因素等进行了明确规定，旨在引导经营者更好地厘清行为边界，避免实施低价无序竞争行为。下一步，有关部门将加强市场监测、行业自律、监管执法，适时对问题突出的经营者开展提醒告诫，必要时开展成本调查，引导经营者自觉规范价格行为，共同维护公平竞争、良性竞争的市场秩序。