China’s Ministry of Industry and Information Technology (MIIT) has told major automakers to resist “irrational competition” and strengthen vehicle quality and safety controls.
MIIT’s Department of Equipment Industry I convened the July 17 meeting, attended by officials from the ministry’s Equipment Industry Development Centre and representatives of major vehicle manufacturers.
The intervention follows several regulatory moves against the intense price competition known in China as “involution”.
In June, MIIT and the State Administration for Market Regulation summoned carmakers suspected of irrational competition and called for tighter pricing compliance, product-quality controls and consumer protection.
Supplier payment terms have been handled through a separate regulatory push.
At a March meeting with 17 automakers, MIIT, the state planner and the market regulator told companies to honour commitments to pay suppliers within 60 days.
China’s State Council had already called for action against irrational competition in the new-energy vehicle sector in July 2025, including closer cost investigations, price monitoring and production-conformity checks.
Regulatory pressure increased again in February, when the market regulator issued automotive pricing-compliance guidelines warning manufacturers against selling below cost to squeeze out competitors.
The latest MIIT instruction shifts part of the focus towards safety.
Automakers were told to assess new designs and technologies, strengthen checks on driver-assistance and autonomous-driving functions, and avoid exaggerated or false advertising.
