China orders automakers to stop steep discounting abroad

China on Tuesday released a sweeping set of rules aimed at reining in aggressive pricing and disorderly competition by its automakers abroad, as the country's car industry continues a rapid global expansion that has drawn scrutiny from governments worldwide.

The 20 guidelines, jointly issued by the Ministry of Commerce, the Ministry of Industry and Information Technology, and the State Administration for Market Regulation, cover overseas marketing, pricing, antitrust compliance, labor practices, data security for connected vehicles, and intellectual property protection. It marks the first time three ministry-level authorities have jointly published rules governing Chinese carmakers' conduct in foreign markets.reuters+2

Pricing and Competition

At the heart of the guidelines is a push to curb the kind of steep discounting and price wars that have characterized China's domestic auto market in recent years. Companies are instructed to base pricing on costs and international supply and demand, and to avoid using prices to gain unfair competitive advantages. When setting suggested retail prices abroad, automakers should establish clear price tiers for different vehicle configurations and avoid frequent or sharp price fluctuations that could hurt consumers or damage brand image.chinadailyasia+1

The rules also call on automakers to set reasonable price differences between countries, accounting for local taxes, logistics costs, and market conditions to avoid disrupting sales networks. Dealers and agents in host countries must be allowed independent pricing rights in accordance with local laws.globaltimes+1

Compliance and Data Security

Beyond pricing, the guidelines require companies to strengthen antitrust compliance, provide truthful marketing disclosures, and avoid misleading advertising. Automakers must also ensure that data processing activities related to connected vehicles and autonomous driving — including collection, use, protection, and cross-border transfers — comply with applicable local laws.globaltimes+1

Companies are urged to comply with host-country labor regulations, recruit employees based on principles of equal opportunity and fair treatment, and invest in vocational training. No penalties were outlined for non-compliance.indexbox+1

Global Context

The guidelines come as Chinese automakers, led by BYD, have accelerated their push into overseas markets amid intensifying competition at home. China exported 8.32 million vehicles in 2025 to more than 200 countries and regions, and Chinese companies have invested in auto manufacturing projects in over 80 markets, according to official data.news.rthk+2

A Commerce Ministry official said the guidelines are intended to promote the "rational and orderly" cross-border deployment of industrial and supply chains and support the long-term international development of the nation's auto industry.reuters