The Ministry of Industry and Information Technology (MIIT) announced a new initiative to regulate the automotive industry, aiming to curb irrational competition. Officials noted that current market practices distort resource allocation and hinder innovation, which negatively impacts the long-term development of the sector.
The ministry plans to implement a special action plan to upgrade automotive standards. This includes stricter requirements for key components, vehicle durability, and reliability. By focusing on technical quality and service, the government intends to guide manufacturers away from relying solely on low-price strategies to gain market share.
Regulatory efforts will also target online industry practices, including the standardization of new car launches and product reviews. Furthermore, the MIIT will monitor payment terms between companies to ensure financial compliance and address illegal activities within the market to maintain a fair competitive environment.
The government is accelerating the legislative process for the Regulations on Motor Vehicle Production Access. This includes establishing a dynamic management system for production licenses and promoting corporate group management. These measures aim to improve resource efficiency and facilitate the exit of outdated production capacity.
