How price wars on online shopping websites may be hurting China and its economy

The New York Times reports that Lin Yunyun, a 28-year-old seller on China’s fast-growing e-commerce platform Pinduoduo, has experienced the relentless pressure to lower prices firsthand. Unlike what she expected, Pinduoduo constantly sends “reminders” whenever other sellers undercut her on diaper prices. Even after reducing her prices, the platform pushes for further cuts to maintain her product’s visibility.
Pinduoduo exemplifies China’s current struggle with deflation.