The Chinese government is growing increasingly frustrated with the manufacturers' price war.

The Chinese government urges car manufacturers not to engage in price wars and to compete fairly.

The Chinese government is growing increasingly frustrated with the manufacturers' price war.
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A similar step was also taken by China's Ministry of Commerce. They will strive to create healthy competition within the automotive industry.

“To address unfair competition, the Ministry of Commerce will also enhance compliance supervision and market rectification efforts,” said He Yongqian, a spokesperson for China's Ministry of Commerce, in another Xinhua report.

According to Yongqian, this decision was made to maintain a fair and competitive market order.

Meanwhile, citing Chinadailyasia, The China Auto Dealers Chamber of Commerce said that manufacturers are currently grappling with difficult conditions.

Geely Starship 7
Photo : KatadataOTO

“The situation has worsened significantly since the second quarter due to a new wave of discounts led by major EV (electric vehicle) players,” they said.

Therefore, they are pushing for a movement to reject reckless discounts. And to return to fair and rational competition.

“Price wars may make headlines. But they drag the entire industry into a slump,” they asserted.


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