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An offline package pickup station for Xiaohongshu, or Redhome, in Zhengzhou, May 31, 2018. [Photo/VCG]

An overall plan to promote regional integration, which was decided at a meeting of the Political Bureau of the Communist Party of China Central Committee in May 2019, stated that the integrated development of the region will be bolstered with measures to advance innovation-driven development and upgrade industrial chains.

And many of the more successful and sizable among them will merely grab market share from smaller peers already selling to the domestic market, resulting in a zero-sum scenario with only winners and losers.

Analysts say the possible license cancellation will sound a sharp warning to current producers and may help to straighten up the currently large but less competitive segment.

And then there is the China-US trade dispute, which has had an adverse impact on private companies. Within this environment it would seem to be very difficult to make much of a contribution.