China unveils new guidelines for automakers’ overseas expansion

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KATHMANDU: Chinese regulators have issued new guidelines for automakers operating overseas. The rules call on companies to comply with local laws and strengthen controls on pricing, competition, corruption and corporate responsibility.

The guidelines come as Chinese automakers rapidly expand into international markets. BYD and other manufacturers are looking overseas for growth as competition in China’s domestic market intensifies.

Under the new guidelines, automakers are expected to set vehicle prices based on costs and market conditions. They have also been advised against using pricing to gain unfair competitive advantages or making frequent and sharp price changes that could hurt consumers or damage brand reputation.

The rules also require companies to provide accurate information in marketing and avoid misleading advertising. Automakers have been urged to protect the reputation of Chinese automotive brands in overseas markets.

Chinese companies have also been asked to strengthen compliance with antitrust rules and avoid disruptive competition. Exported vehicles should be adapted to meet the needs of local markets.

The guidelines further cover labor laws and risk management. Companies are expected to assess political, economic and safety risks in countries where they operate.

China exported 8.32 million vehicles to more than 200 countries and regions in 2025, according to official data. Chinese automakers have also invested in vehicle manufacturing projects in more than 80 overseas markets.

A Commerce Ministry official said the guidelines are aimed at promoting the “rational and orderly” expansion of China’s automotive industry and its overseas supply chains.

The new rules come as Chinese automakers face growing scrutiny in several international markets over pricing, competition and the rapid expansion of their vehicle exports.

China unveils new guidelines for automakers’ overseas expansion

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