China tells carmakers, suppliers to avoid price wars abroad to pave way for healthy growth

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Sep 1, 2026 #Beijing, #carmakers' go-global drive, #China Association of Automobile Manufacturers, #Chinese carmakers, #Chinese electric vehicle, #Chinese EVs' technological and cost advantages, #Gao Shen, #global energy crisis, #global energy shock, #Ministry of Industry and Information Technology, #Minstry of Commerce, #Nick Lai, #price competition in overseas markets, #SCMP Business, #Shanghai, #surging EV exports

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China tells carmakers, suppliers to avoid price wars abroad to pave way for healthy growth

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An electric vehicle assembly line in Chongqing, southwestern China. Photo: EPA

Daniel Renin ShanghaiPublished: 7:00pm, 1 Sep 2026Beijing has ordered Chinese carmakers and component suppliers to refrain from offering steep discounts in overseas markets as they accelerate their global expansion.

For the first time, three ministry-level authorities published guidelines governing Chinese carmakers abroad, aimed at improving their global competitiveness, according to a statement by the Ministry of Commerce.

“The guidelines aim to promote long-term, healthy development of the Chinese automotive industry in international markets,” it said.

“Car companies are urged to strengthen compliance and wield international influence to promote cooperation in the global automotive industry and supply chain.”

The guidelines, jointly issued on Tuesday by the commerce ministry, the Ministry of Industry and Information Technology and the State Administration for Market Regulation, did not specify punishments for non-compliance.

Initial signs that Chinese carmakers would launch harsh discount wars abroad have prompted regulators to step in

Gao Shen, independent analyst

Banking on their technological and cost advantages, Chinese electric vehicle (EV) makers and their supply chain vendors – from battery producers to software providers – have been revving up overseas expansion over the past two years, with surging exports and rising local production.AdvertisementSelect VoiceSelect Speed00:0000:001.00x