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Representative image · Photo: IndiaFocal
Representative image · Photo: IndiaFocal

China unveils new rules for automakers expanding overseas

China issued guidelines for automakers' overseas operations, focusing on compliance, fair pricing, and risk management amid global expansion.

Chinese regulators have issued a new set of guidelines governing the overseas operations of the country's automakers, as domestic competition pushes manufacturers to expand aggressively into global markets.

The guidelines, released on Tuesday, direct companies to comply with laws related to outbound investment and overseas business activities. They also place a strong emphasis on strengthening compliance in areas such as anti-monopoly practices, anti-corruption measures, and corporate social responsibility.

A key focus of the new rules is pricing strategy. Automakers are instructed to base their pricing on actual costs and prevailing market conditions, and to avoid using price cuts to gain an unfair competitive edge. The guidelines also caution against frequent or steep price changes that could harm consumers or damage brand reputation.

Marketing practices are also addressed. Companies are required to provide truthful information in their advertising and avoid misleading claims, with the broader goal of protecting the reputation of Chinese auto brands internationally.

The guidelines further urge firms to enhance their antitrust compliance, prevent disruptive competition, and ensure that exported products are tailored to meet the specific needs of local markets. Compliance with local labour laws is also mandated.

In addition, the rules call for improved risk management frameworks that account for political, economic, and safety conditions in host countries.

Official data cited in the guidelines shows that China exported 8.32 million vehicles in 2025 to more than 200 countries and regions. Chinese companies have also invested in auto manufacturing projects across over 80 markets.

A Commerce Ministry official said the guidelines are designed to promote the "rational and orderly" cross-border deployment of industrial and supply chains, and to support the long-term international development of China's auto industry.