Chinese authorities reportedly issued new export guidelines on Tuesday that the country’s automakers must follow. Among other requirements, companies are urged to comply with existing laws on foreign investment and trade, and to more strictly adhere to regulations on antitrust, anti-corruption, and social responsibility.
The guidelines are a response to the rapid global expansion of Chinese automakers, particularly in the electric and partially electrified passenger car segment – which is currently led by BYD. The backdrop is overcapacity and intense domestic competition, which is prompting more Chinese brands to seek sales opportunities abroad.
According to Reuters, the regulations require automakers to “base pricing on costs and market conditions, avoid using prices to gain unfair competitive advantages, and refrain from frequent or steep price changes that could harm consumers or brand image.” Companies are also obligated to provide truthful information in their marketing, avoid misleading advertising, and thus protect the reputation of Chinese automotive brands overseas.
The guidelines further call on companies to always comply with antitrust laws, prevent distortive competition, and adhere to local labour laws. A representative of the Ministry of Commerce told Reuters that the guidelines primarily aim to promote the “rational and orderly” cross-border development of industrial and supply chains, and to support the long-term international growth of China’s automotive industry.
