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China Warns Its Car Brands Against Overseas Price Wars

The guidelines call for pricing transparency, better after-sales support and legal data collection as China seeks to curb overseas price wars.

  • On Tuesday, China's Ministry of Commerce and Ministry of Industry and Information Technology, in collaboration with the State Administration for Market Regulation, published new guidelines governing automakers exporting vehicles overseas.
  • Between January and July 2026, China exported 72.5 per cent more passenger vehicles, reaching around 5.3 million units; authorities sought to combat "irrational competition" and price wars eroding automaker profitability.
  • Automakers "must not disrupt the order of market competition to obtain an improper competitive advantage," according to the guidelines, which also prohibit arbitrary surcharges beyond displayed prices.
  • New directives demand better "quality management" and after-sales support, with Xpeng Australia and New Zealand serving as a model by honoring $5000 cashback offers for G6 SUV buyers.
  • Authorities also targeted "zero-mileage" cars, a practice where vehicles are counted as domestic sales before export, to "promote orderly and healthy international development of China's automotive industry.
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China warns its car brands against overseas price wars

The Chinese government has directed Chinese automakers to avoid disrupting sales channels for an ‘improper advantage’ in export markets.

·Osborne Park, Australia
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On 1 September 2026, Beijing oversees the prices and communication of its car manufacturers abroad. In line: to prevent the price war of Chinese manufacturers from simmering in Europe.

The price war that is taking place in China must not extend beyond national borders. This new directive from the Chinese government to the attention of the national car manufacturers has something to surprise. In a few months, the rules of the game have changed in China.

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Biznis.rs broke the news on Tuesday, September 1, 2026.
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