China's delivery sector is currently under intense scrutiny as industry giants Alibaba and Meituan contend with new competition from JD.com. This emerging business rivalry is prompting calls from the government for a more equitable regulatory environment.

The competition intensified in February when JD.com announced its entry into the food delivery market, a move seen as a direct threat to Meituan, the sector's leading super-app, as well as Alibaba, which manages its own delivery services.

In an effort to maintain market dominance, Alibaba and Meituan have adopted aggressive strategies, leveraging substantial discounts, a broader range of offerings, and faster delivery times. Alibaba has introduced 'instant purchases' for electronics, promising ultra-fast deliveries, while Meituan has countered with similar offerings for high-tech products.

These escalating discounts have drawn in customers, resulting in offers where beverages like tea and coffee are sold for as little as 1 yuan or even given away for free.

However, this fierce competition is taking a toll on retailers and small suppliers, leading to thinning profit margins and growing operational losses. The strain on the business ecosystem has raised alarms among stakeholders.

In response to these negative repercussions, the Chinese government has intervened to address the turmoil within the sector. A public commitment from the companies to reduce chaotic competition was made in the wake of a statement from the State Administration for Market Regulation.

This statement, issued on July 18, urged all platforms to standardize promotional activities and engage in more rational competition, a trajectory aligned with the policy objectives outlined during the Central Economic Work Conference held in December.

The 2025 Government Work Report also reinforced these priorities, advocating for the dismantling of barriers to market entry and exit while promoting the establishment of a unified national market.

Moreover, concerns over the welfare of workers in the delivery sector have emerged, with independent think tank ANBOUND noting the potential for labor shortages prompted by the current competitive dynamics.

Li Mingtao, the chief e-commerce analyst at the China International Electronic Commerce Center, emphasized in an interview that the commitments made by the companies represent a 'proactive' approach to combat early signs of violations and unfair competition within the food delivery space.