China’s regulators warned the country’s automakers on Tuesday not to launch aggressive pricing strategies in overseas markets, as the sector’s blistering global expansion raises fears of so-called involution.
Calling for “rational and orderly” expansion, Beijing hopes to avoid the price war dynamics that have eroded profits among its domestic e-commerce giants, and which could also spark harsher trade measures from partners seeking to protect their own auto industries.
China is also ramping up scrutiny of rapid assembly line processes over safety concerns — anxieties that are beginning to bleed into executives’ rhetoric: “Cars aren’t fast-moving consumer goods,” Chery’s vice president recently wrote. “They touch the safety of millions of families… There are simply some development timelines we cannot afford to shortcut.”