China issues competition rules for carmakers venturing abroad

China's commerce, industry and market-regulation regulators have jointly rolled out guidelines governing how automotive companies should compete in international markets. The document, published Tuesday, is framed as general reference guidance — firms remain bound by the laws of host countries and international organizations.

On pricing, the guidance steers automakers toward strategies anchored in costs and overseas supply-and-demand conditions. It asks them to set distinct price tiers for different configurations, refrain from sharp and frequent price swings that could hurt buyers and brand image, respect local dealers' pricing independence, and keep prices, discounts, gifts and financing offers transparent. Promotional claims must be truthful and free of misleading advertising.

The document reaches beyond sales into localized operations. Companies producing or operating abroad are expected to improve workplace safety, quality control, after-sales support, labor conditions and intellectual-property protection, while data gathered by connected and self-driving vehicles must be handled and transferred across borders in line with applicable rules, with consumers' personal information safeguarded. Firms are also told to weigh host-country risks before shipping products that may not suit local conditions.

The push comes as Chinese companies have invested in vehicle manufacturing across more than 80 countries and regions, and China shipped 8.32 million vehicles abroad in 2025. Passenger-vehicle exports reached roughly 5.18 million units in the first seven months of 2026, including about 2.77 million new energy vehicles — a jump of around 129 percent year on year, per CPCA data. The commerce ministry said the guidelines aim to help carmakers, component suppliers and service networks go global in a coordinated way, supporting the industry's shift from exporting products to internationalizing its broader supply chain.