The Ministry of Industry and Information Technology (MIIT) of China held a press conference on September 11 to address the state of the intelligent connected new energy vehicle industry. Officials noted that irrational competition, including public disputes and mutual disparagement between companies, has hindered industry growth and distorted resource allocation.
To combat these issues, the MIIT has implemented a collaborative governance framework. Efforts include optimizing supplier payment terms, conducting supervision of product consistency, and addressing online misconduct. Authorities report that these measures have already led to more rational business behavior and improved payment cycles across the sector.
Moving forward, the ministry plans to regulate new vehicle launches and product reviews to prevent market disorder. The government will also focus on upgrading industry standards for key components and safety features, encouraging manufacturers to compete on technology and quality rather than relying on low-price strategies.
The regulatory agenda includes accelerating the legislative process for vehicle production access and establishing a dynamic management system for market entry and exit. The MIIT intends to strengthen oversight of product design and testing, while promoting the phase-out of outdated production capacity to ensure long-term industry stability.
