Also over the weekend, China’s automobile industry association warned against “vicious competition” that would hurt profit margins, impair product quality and hinder the healthy development of the industry. The Ministry of Industry and Information Technology agreed with that stance and will step up measures to root out unhealthy competition in the auto sector and protect market order and consumer rights, media outlet Cailian reported.
BYD Co. shares fell, bringing losses over the past week to more than 17%, on concern that its price cuts are drawing government scrutiny and becoming unsustainable for the Chinese EV industry.
In a commentary on Sunday, the People’s Daily — the mouthpiece of China’s Communist Party — criticised the “rat-race competition” and warned that price wars can seriously affect supply-chain security. Low-priced and low-quality products would seriously damage the international reputation of “Made-in-China,” it said, without naming any specific companies.
