One question we’ve been asked repeatedly: How does the Chinese government view the subsidy-fueled war in food delivery and quick commerce?
The battle intensified in July, just as temperatures in many Chinese cities soared past 40°C. Meituan reported that on Saturday, 13 July, it fulfilled over 150 million quick commerce and food delivery orders, with an average delivery time of 34 minutes. Taobao, meanwhile, claimed more than 80 million on-demand orders on 6 July.
These staggering numbers came with a cost: hundreds of millions of dollars in subsidies were poured in to boost order volume. The contest is now a high-stakes game of “who will blink first”—though we haven’t yet seen a Trump-style TACO moment.
One question many asked us is: how does the Chinese government view this intensive subsidy war?
Two voices from one Party Mouthpiece
Last week, People’s Daily—the official newspaper of the Chinese Communist Party—published two seemingly conflicting commentaries on this very topic.
As the Party’s central mouthpiece, People’s Daily commentaries are closely watched, often interpreted as signals of policy direction or internal consensus.
The first article, published on 9 July 2025 under the byline 筋斗云 (Cloud Somersault), was titled: “The Food Delivery Wars” – No Winners in Price Wars, Only Innovation Leads to the Future.
The piece delivered a sharp warning about unsustainable competition:
“A price war with no bottom line is ultimately nothing more than a brutal game of market capture. Almost every round of cash-burning competition ends with price hikes—there’s no such thing as a free lunch.
Internet companies, born with innovation in their DNA, should broaden their horizons and aim for higher, long-term goals.”
The second article, published on 11 July 2025 under the byline 知微 (the subtle observer), struck a notably different tone.
Titled:“People’s Daily Financial Review: More Delivery Orders, Booming Business for Small Shops”, it painted the subsidy-driven surge in a much more positive light:
“Platform investment serves as a key lever for unlocking consumer potential. Initiatives such as consumption vouchers by platforms like Taobao InstaShopping and Meituan not only offer tangible benefits to consumers, but also ignite enthusiasm for spending. At the same time, delivery riders see an increase in both order volume and income, bringing a genuine sense of livelihood improvement.
The biggest beneficiaries, however, are small and medium-sized merchants. Brick-and-mortar restaurants, mom-and-pop stores, and convenience shops have leveraged these platforms to expand their customer reach. The resulting order growth translates into direct revenue gains, without incurring additional costs—creating room for long-term growth.”
Who are the authors behind these bylines?
To interpret these two perspectives, we must understand where they come from.
- “Cloud Somersault” is a collective byline used by the Commentary Department of People’s Daily, known for sharp, topical opinion pieces. These are often used to test narratives or nudge public discourse.
- “The Subtle Observer” reflects the voice of the Economic and Social Affairs Desk, a group that takes a more analytical approach to interpreting economic signals and policy effects.
Both are authoritative within the People’s Daily system. Neither would publish without alignment with broader messaging intent.
A mixed message, or a coordinated one?
So—do these seemingly opposing commentaries signal that Beijing hasn’t made up its mind?
Not necessarily.
A more likely explanation: this is coordinated two-track messaging, which the Party has long practised in managing public opinion and market expectations.
In this case:
- “The Subtle Observer” article acknowledges the short-term economic benefits of the platforms’ subsidies: consumption stimulation, employment growth, and SME recovery. All these are important policy agendas of the government;
- “Cloud Somersault” piece acts as a reminder that sustainability and innovation must anchor long-term strategy.
Reading the room in 2025
After years of intense regulatory scrutiny, Chinese tech platforms would not launch aggressive subsidy campaigns unless they had taken the policy temperature carefully. The fact that both commentaries were published within days of each other suggests not confusion, but more likely intentional balance.
In short: the state welcomes the results, but expects more than just burning money.
The post How does Beijing really see China’s quick commerce subsidy war? first appeared on The Low Down - Momentum Works.
