China issues guideline to regulate automakers' overseas competitive practices

China issued a guideline on Tuesday to regulate Chinese automakers' overseas competitive practices and strengthen corporate compliance, aiming to promote the sound and orderly global expansion of the country's auto industry.

The 20-article guideline provides general guidance for Chinese automotive companies engaged in international operations, with a focus on practices that include overseas marketing, according to a circular released by China's Ministry of Commerce and two other government departments.

It also provides guidance on compliance for automakers in areas such as overseas production safety, quality management, labor protection and data security.

To regulate overseas competitive practices, the guideline encourages automakers to adopt cost-based pricing strategies guided by international market supply and demand, and urges them not to disrupt market competition in pursuit of unfair advantages.

When setting suggested retail prices for vehicles in overseas markets, companies should follow local laws and regulations, market principles and business practices of host countries and regions, establish clear price tiers for different vehicle configurations, and avoid frequent or substantial price fluctuations that could harm consumer interests, according to the guideline.

The guideline also calls on automakers to respect local dealers' and agents' pricing autonomy and conduct promotional activities in line with local laws and customs.

An official with the Ministry of Commerce said the guideline emphasizes legal compliance, fair competition, mutual benefit and win-win cooperation in automakers' overseas practices.

"It will help Chinese automotive companies to fulfill their social responsibilities overseas and better integrate into the economic and social development of host countries," the official said, adding that it will also promote deeper integration and common development of global automotive industrial and supply chains.

Customs data showed that China exported 8.32 million vehicles to more than 200 countries and regions in 2025. Chinese companies have so far invested in automotive manufacturing in over 80 countries and regions. ■