Two government agencies have summoned and cautioned automakers suspected of engaging in unfair competition
On June 11, the Ministry of Industry and Information Technology and the State Administration for Market Regulation held a meeting with automobile manufacturers suspected of engaging in unfair competitive practices to issue a formal warning. The authorities required the companies to strictly comply with laws, regulations, and rules such as the *Price Law of the People’s Republic of China* and the *Provisions on Curbing Low-Price Dumping Practices*. They were also instructed to strengthen price compliance systems and enhance product quality control in accordance with the *Guidelines for Price Compliance in the Automotive Industry*, to effectively protect the legitimate rights and interests of consumers, and to jointly uphold a market order characterized by fair pricing and healthy competition.
So far this year, competition in the domestic automotive market has continued to intensify. Issues such as an overall imbalance between supply and demand and product homogenization have become increasingly prominent, and competition in some segments has strayed from healthy practices, giving rise to irrational and malicious competitive behavior. Although the names of specific companies were not disclosed during the meeting, it sent a clear signal that relevant authorities are working to guide and regulate healthy competition within the industry.
