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Home > Finance > China issues auto industry guidelines to curb price wars

China issues auto industry guidelines to curb price wars

Published by Global Banking & Finance Review®

Posted on February 12, 2026

1 min read

Last updated: February 12, 2026

China issues auto industry guidelines to curb price wars - Finance news and analysis from Global Banking & Finance Review

Tags:Automotive industry

Quick Summary

China's market watchdog issues guidelines to regulate auto industry pricing, targeting price wars and unfair practices to protect consumers.

China Unveils New Guidelines to Regulate Auto Industry Pricing

Overview of China's Auto Industry Guidelines

BEIJING, Feb 12 (Reuters) - China's market watchdog on Thursday released guidelines for the auto industry aimed at regulating pricing behaviour, curbing price wars and preventing unfair competition.

Objectives of the Guidelines

The guidelines from the State Administration for Market Regulation apply to car makers, part suppliers and dealers involved in car production and new vehicle sales in China.

Targeted Practices

They target practices including failure to display prices as required and deceptive promotions, while encouraging sales platforms to alert consumers to potential risk associated with "significantly low-priced" offers.

Implications for Consumers

(Reporting by Ethan Wang and Ryan Woo; Editing by Christopher Cushing)

Key Takeaways

•China's market watchdog releases new auto industry guidelines.
•Guidelines aim to curb price wars and prevent unfair competition.
•Applies to car makers, part suppliers, and dealers in China.
•Targets deceptive promotions and encourages price transparency.
•Sales platforms urged to warn about low-priced offers.

Frequently Asked Questions about China issues auto industry guidelines to curb price wars

1What is the automotive industry?

The automotive industry encompasses the design, development, manufacturing, marketing, and selling of motor vehicles, including cars, trucks, and motorcycles.

2What is financial regulation?

Financial regulation refers to the laws and rules that govern financial institutions and markets to ensure stability, transparency, and consumer protection.

Overview of China's Auto Industry Guidelines

BEIJING, Feb 12 (Reuters) - China's market watchdog on Thursday released guidelines for the auto industry aimed at regulating pricing behaviour, curbing price wars and preventing unfair competition.

Objectives of the Guidelines

The guidelines from the State Administration for Market Regulation apply to car makers, part suppliers and dealers involved in car production and new vehicle sales in China.

Targeted Practices

Implications for Consumers

(Reporting by Ethan Wang and Ryan Woo; Editing by Christopher Cushing)

Key Takeaways

•China's market watchdog releases new auto industry guidelines.

•Guidelines aim to curb price wars and prevent unfair competition.

•Applies to car makers, part suppliers, and dealers in China.

•Targets deceptive promotions and encourages price transparency.

•Sales platforms urged to warn about low-priced offers.

Frequently Asked Questions

1What is the automotive industry?

The automotive industry encompasses the design, development, manufacturing, marketing, and selling of motor vehicles, including cars, trucks, and motorcycles.

2What is financial regulation?

Financial regulation refers to the laws and rules that govern financial institutions and markets to ensure stability, transparency, and consumer protection.