China is trying to prevent the fierce price competition in its domestic car market from spreading unchecked overseas. Three central government bodies have issued joint guidelines for Chinese automakers operating internationally, calling on companies to avoid disruptive low-price competition and base pricing on costs, local demand and market conditions.
The guidelines were issued by the Ministry of Commerce, the Ministry of Industry and Information Technology and the State Administration for Market Regulation. They come as Chinese manufacturers rapidly expand sales, production and distribution networks across Europe, Latin America, Southeast Asia and other markets.
Pricing is at the centre of the new rules
Chinese automakers are being encouraged to establish overseas pricing mechanisms that reflect production costs and international supply and demand. Regulators also want clear price differences between vehicle configurations and warn against frequent or steep price changes that could hurt consumers, dealers and the long-term reputation of Chinese brands.
Companies are also expected to respect the independent pricing rights of overseas dealers and agents. Discounts, financing offers, gifts and other sales incentives should be transparent and comply with local rules and commercial practices.
The guidelines go far beyond prices
The document contains 20 provisions covering areas including advertising, product quality, workplace safety, labour rights, intellectual property, antitrust rules and anti-corruption compliance. Data governance is another important area, particularly for connected vehicles and increasingly advanced driver-assistance systems.
The guidelines are not a replacement for the laws of destination markets. Chinese companies are explicitly expected to comply with host-country legislation and relevant international rules as they expand abroad.
China’s car exports have surged
The new framework reflects the scale of China’s automotive expansion. Official figures cited by Chinese authorities show the country exported 8.32 million vehicles in 2025 to more than 200 countries and regions, while Chinese companies have invested in automotive manufacturing in more than 80 markets.
The International Energy Agency says China’s electric-car exports doubled in 2025 as intense competition and tight margins at home pushed manufacturers to seek growth abroad. Sales of Chinese-made electric cars in Europe rose by almost 50% to around 940,000 vehicles during the year.
Beijing wants expansion without another trade backlash
The challenge for policymakers is to preserve the international growth of Chinese manufacturers without encouraging practices that could trigger further trade restrictions. Aggressive discounting can strengthen arguments for tariffs, anti-subsidy investigations and other protective measures in importing countries.
The European Union has already imposed additional duties on some battery-electric vehicles imported from China. At the same time, Chinese manufacturers are investing more heavily in overseas production, which is gradually changing the competitive landscape from an export-led model towards a combination of exports and local manufacturing.
The new guidelines therefore mark a shift in emphasis. Beijing still wants its automotive industry to expand globally, but it increasingly wants that growth to be accompanied by pricing discipline, stronger compliance and more sustainable relationships with overseas dealers and regulators.
Sources: Reuters, China Ministry of Commerce, International Energy Agency.
