China Seeks to Cool Auto Sector's Hyper-Competitive Tactics
By Reuters | 05 Jun, 2025

The Chinese government is concerned that anti-competitive practices may lead to distortions in the development of its fast-growing auto industry.

The logo of BYD is displayed at BYD Dreamcast conference in Beijing, China, April 11, 2016. REUTERS/Kim Kyung-Hoon

China's commerce ministry said on Thursday that it would collaborate with other government departments to step up rectification of the excessive competition in the auto market.

The ministry will strengthen compliance guidance to ensure fair market competition and promote healthy industry development, commerce ministry spokesperson He Yongqian said.

Auto industry associations, research institutions and companies attended a meeting recently organised by the ministry, He said, without elaborating.

The ministry scheduled a meeting last week with industry bodies and automakers including BYD and Dongfeng Motor to discuss increasing sales of "used cars" that were never driven, Reuters reported. 

The industry ministry and the China Association of Auto Manufacturers called for a halt to the industry's bruising price wars over the weekend. 

(Reporting by Qiaoyi Li and Brenda Goh; Editing by Himani Sarkar)