What: In China, large e-commerce players are triggering a price war in proportions never seen before.

Why it is important: What happens in China does not stay in China anymore, and this might give ideas to other large e-commerce players in the rest of the world, in order to boost demand and get rid of stocks.

JD.com, a Chinese e-commerce giant, has launched a subsidy campaign worth RMB 10 billion ($1.4 billion) to compete with rivals Alibaba and PDD Holdings. The promotion covers a range of items, including iPhones, earphones, air conditioners, and groceries like milk.

JD.com is also offering double compensation to customers who can find the same product at a lower price on competitor sites, such as Pinduoduo and Alibaba's Tmall. This is JD.com's largest sales promotion event in history.

Jd.com begins largest ever promotion