China tackles ‘irrational competition’ to curb EV price war.

Beijing Targets EV Competition

State Funding Boosts EVs

• Large public funds support battery‑powered vehicle development.
• Chinese officials aim to tame the swelling electric‑vehicle market.

Price War Undercuts Startups

• Companies flood the domestic market with low‑cost cars.
• Heavy discounts entice customers to trade in old cars for new ones.

Involution Criticism Grows

• Industry insiders describe the endless race to outcompete as involution.
• Critics argue the competition ends nowhere.

Policymakers Seek Order

Premier Li Qiang Meets

• The meeting was chaired by Premier Li Qiang.
• It aimed to tighten price monitoring and improve long‑term regulation.

Regulations to Curb Irrational Competition

• Officials called for stronger order in the new‑energy‑vehicle market.
• They emphasized the need to curb irrational competition.

Industry Self‑Discipline Emphasized

• Authorities urged firms to strengthen self‑discipline.

Tech Innovation as Differentiator

• Companies were encouraged to enhance competitiveness through technological innovation.

Industry Groups Warn

China Association of Automobile Manufacturers

• The industry group warned that disorderly competition would worsen rivalry.
• It could hurt overall growth.

Analysts Predict Price Controls

Bill Bishop’s Analysis

• Analyst Bill Bishop suggested Beijing might impose price controls on electric vehicles.
• He noted the government’s tough language signaled intervention to rectify irrational competition.