China Orders Automakers to Curb Overseas Price Cuts as Exports Surge

China ordered domestic automakers to halt volatile overseas price cuts and deceptive marketing across foreign markets on Tuesday, after passenger car exports reached 5.18 million units through July.

Shipments of electric and plug-in hybrid vehicles jumped 129 per cent to roughly 2.77 million units over the same seven-month period.

Jointly released by the Ministry of Commerce, the Ministry of Industry and Information Technology, and the State Administration for Market Regulation, the 20-article rulebook targets predatory pricing practices that damage brand reputations abroad. The agencies directed manufacturers to set export prices based on production costs and local supply, avoid abrupt discounts, and give foreign dealerships full autonomy over retail pricing. Sales incentives, customer gifts, and financing promotions must also comply transparently with host-market laws.

Rules for Dealerships and Data

Beyond showroom floors, the guidelines govern physical factory investments, which currently span more than 80 countries. Auto groups setting up regional assembly plants must adhere to local workplace safety, intellectual property protections, after-sales requirements, and labor standards.

The policy also places strict limits on software and vehicle intelligence. Companies running connected-car or autonomous-driving systems abroad must handle consumer privacy and cross-border data transfers in accordance with local regulations.

Exporting Domestic Competition

Prolonged price wars inside China squeezed dealer margins and triggered aggressive showroom discounting over the past two years. By extending regulatory supervision overseas, Beijing is stepping in to prevent state-backed and private manufacturers from exporting those destructive discounting tactics into Southeast Asia, Europe, and Latin America.

Passenger new energy vehicle shipments reached 540,000 units in July alone, capturing 58.8 per cent of total passenger exports, as manufacturers attempt to outpace the 8.32 million total vehicles China exported worldwide in 2025.