subsidies

Meituan’s local commerce CEO, Wang Putao, addressed concerns about China’s food delivery “war,” acknowledging user anxieties and merchant fatigue caused by intense competition and subsidies. He suggested a return to “rational business judgment” as a path to resolution. Wang outlined potential war-ending scenarios, including annexation, stalemate, or external intervention. Industry insiders view the delivery battle as a platform competition for instant retail dominance, but the long-term sustainability of heavy subsidization is questioned. The benefits for riders and consumers are likely temporary.

A price war in China’s online food delivery market, involving Meituan, Taobao Flash, and JD.com, has led to widespread “free” promotions. This triggered a surge in orders, especially for bubble tea, but also resulted in significant order abandonments. Shops are facing losses as unclaimed drinks are discarded. The situation highlights irresponsible consumption, food waste, and the need for consumers to consider their actual needs before capitalizing on promotional offers, urging respect for labor and resources.

Alibaba’s Taobao Now launched a 50-billion-yuan subsidy program, boosting consumer spending and merchant growth. Early data shows significant increases in orders for food and beverage categories, as well as retail products. This year-long initiative aims to invigorate urban service consumption and provide substantial benefits to both consumers and businesses, fostering a new integrated e-commerce and service ecosystem.

Taobao Flash Deals launched a RMB 50 billion subsidy program, leading to over 100% order growth for 589 brands on day one. Sectors like food, electronics, and apparel saw significant increases. Summer essentials, including heat-relief products and swimwear, are particularly popular. The initiative aims to boost consumer and merchant growth through coupons, red envelopes, and reduced commissions, fostering a collaborative consumption ecosystem.

China is boosting its consumer market with a new round of subsidies to encourage the replacement of old goods. ¥138 billion (approximately $19 billion USD) in central government funds will be released in Q3 and Q4, following the distribution of ¥162 billion in the first half of the year. The program is part of a larger initiative with a total of ¥300 billion allocated and currently about 50% utilized, covering appliances, electronics, and vehicles. Local governments are also expected to contribute.

JD.com has entered the travel and hospitality market, launching the “JD Hotels PLUS Member Program” with commission-free services for hotels. The company aims to leverage its supply chain expertise and food delivery services, offering competitive pricing and eliminating bundled services. While initial airfare prices match competitors, hotel bookings show subsidy benefits. JD.com is also actively recruiting industry professionals to bolster this sector.

In June 2025, reports emerged of fraud within the tech sector, exploiting a new government subsidy program for digital devices. “Scalpers” are reportedly using students to purchase subsidized items and resell them, netting profits of up to 300 yuan per device. This illegal activity involves dedicated chat groups and circumvents in-person verification. Legal experts warn that this scheme, even with small amounts, could constitute fraud, leading to penalties.

Major discounts on premium audio products are currently available, including high-end home audio systems, noise-canceling headphones, and gaming headsets. Leading retailers offer substantial savings, further reduced by government subsidies. Featured products include the B&O Beosound A5, Sony WH-1000XM6, SteelSeries Nova Pro, and various models like Huawei FreeBuds Pro 4, offering diverse audio solutions at competitive prices for a limited time.

Vipshop is concluding its 618 mid-year sale with a final push, launching major discounts tonight at 8 p.m. Expect significant reductions on various products, including 15% off or more. Flash sales from June 15th to 20th and limited-time subsidies offering up to ¥250 off select items (e.g., Tory Burch, COACH, Dyson) aim to boost sales. The “New Trend Bazaar” and “Final Sprint” will provide more deals before the event ends on June 21st.

Commerce Secretary Howard Lutnick testified before Congress, indicating potential renegotiations of the Biden administration’s semiconductor subsidies under the CHIPS Act due to concerns of overgenerosity. The administration is reevaluating grants, aiming for better returns on investment, and hinting at cancellation of some deals. TSMC’s increased investment commitment is cited as a positive example. The industry anticipates the impact of revisions impacting future semiconductor independence.