Guideline to steer auto industry's global expansion

China's latest guideline regulating overseas competition and compliance practices of automakers will help put the country's auto export growth on a more sustainable path, industry experts and company executives said on Wednesday.

They made the comments as the Ministry of Commerce, the Ministry of Industry and Information Technology and the State Administration for Market Regulation jointly unveiled a guideline to help Chinese automotive companies standardize their overseas expansion practices.

The 20-article guideline covers a broad range of overseas operations, including pricing, dealer management, marketing, employment, cross-border data transfers, intellectual property, antitrust compliance and green supply chains.

The guideline directly addresses one of the thorniest issues facing China's auto industry: price competition. Six of its 20 provisions deal with overseas market competition, touching on pricing, price differences, dealer pricing and promotions.

The guideline encourages automakers to adopt cost-based pricing strategies guided by supply and demand in the international market, while urging them not to disrupt market competition in pursuit of unfair advantages.

Automakers should establish clear price tiers for different vehicle configurations and avoid frequent or substantial price fluctuations that could harm consumer interests and damage brand image, the guideline said.

It also calls on automakers to set reasonable price differences between host countries and regions, taking into account local market conditions, tax structures and logistics costs, in order to avoid disrupting sales networks.

Sun Xiaohong, a senior expert from the China Chamber of Commerce for Import and Export of Machinery and Electronic Products, said that cars differ from ordinary consumer goods as overseas buyers also see them as assets with significant financial value.

"China wants its automakers to compete globally through technology, brands, services and localization, rather than relying on repeated price cuts to grab market share," he said.

The guideline also sets out strict requirements for automakers to ensure that data handling for connected and autonomous vehicles complies with international practices, as well as the respective requirements of host countries and regions.

Meng Qingxin, senior vice-president of Chinese digital mapping company NavInfo, said that data compliance has become an "entry ticket" for Chinese automotive companies expanding overseas.

"That is particularly true in Europe, where companies need comprehensive capabilities built around local laws, local data operations and data localization," Meng said.

According to the latest customs data, Chinese vehicle exports reached 8.32 million units in 2025, covering more than 200 countries and regions, while Chinese companies invested in automotive manufacturing in over 80 overseas markets.

Shi Yonghong, vice-president of the China Chamber of Commerce for Import and Export of Machinery and Electronic Products, said: "The guideline comes at a time when China's auto industry is upgrading from 'products going global' to 'industrial chains going global', and compliance involving environmental protection, taxation, employment and data localization is becoming increasingly important.

"The new guideline covers almost the entire life-cycle of automakers' overseas operations, helping them comply with local rules, protect brand value and take root in overseas economies."

chengyu@chinadaily.com.cn