Two Departments Summon Automakers to Regulate Price Competition

[Policy Regulation] The Ministry of Industry and Information Technology (MIIT) and the State Administration for Market Regulation (SAMR) jointly summoned automobile manufacturers suspected of engaging in irrational competition.

Key Development: On June 11, the two departments required automakers to strictly comply with pricing regulations.

The Ministry of Industry and Information Technology and the State Administration for Market Regulation summoned automakers exhibiting irrational competitive behavior, emphasizing strict adherence to the Price Law of the People's Republic of China and the Provisions on Prohibiting Predatory Pricing, as well as full implementation of the Compliance Guidelines for Pricing Practices in the Automotive Industry.

Strategic Rationale: Curb predatory pricing to safeguard product quality and consumer rights

Regulators demanded that companies strengthen pricing compliance frameworks and enhance product quality control, eliminating cutthroat price wars that compromise quality, and promoting a healthy market order based on quality-driven fair pricing.