China’s Ministry of Commerce, Ministry of Industry and Information Technology, and the State Administration for Market Regulation jointly issued new guidelines on September 1, 2026, urging Chinese carmakers and suppliers to avoid aggressive price cuts and price wars in export markets [1, 2, 3]. The government aims to promote the long-term, healthy development and sustainable expansion of China’s automotive industry internationally, while protecting brand image and consumer interests [2, 3]. The Ministry of Commerce stated the guidelines are meant to “promote long-term, healthy development of the Chinese automotive industry in international markets” [2].
The guidelines emphasize strict compliance with local regulations and respect for price-setting rights of overseas dealers. They also call for enhanced safety management at overseas production facilities, including improvements in emergency response systems [2, 3]. However, the guidelines do not specify any punishments or enforcement mechanisms for non-compliance [2, 3].
The government’s move responds to growing concerns that intense domestic competition and frequent price wars among Chinese carmakers risked undermining vehicle safety, product quality, brand reputation, and the global competitiveness of prominent firms such as BYD and Geely [1, 3]. In 2024, BYD was investigated in Thailand over dealer discount practices but was cleared of wrongdoing [3].
By setting these guidelines, authorities seek to balance competitiveness with sustainable growth and brand protection in foreign markets. The impact of the advice will be closely watched as Chinese automakers continue to expand overseas.
The government has not announced a timeline for any enforcement or follow-up actions related to these guidelines.
