China vows to regulate 'irrational' competition in EV industry
The cabinet meeting, presided by Chinese Premier Li Qiang, was held as a two-year price war in the world's largest auto market only intensifies.
China will focus on promoting the high-quality development of the electric vehicle industry and implement comprehensive measures in both the short- and long-term to address the "phenomenon of irrational competition" in the sector, CCTV quoted the cabinet as saying, without giving further details.
The cabinet will also urge the main automakers to fulfil commitments on supplier payment terms and promised to help them boost competitiveness through technological innovation and quality improvement.
Industry regulators and executives have previously warned of excessive competition and called on automakers to halt the bruising price war which they say threatens the sector's health and sustainable development.
Concerns about oversupply persist, with new vehicles being shipped overseas as "used" since 2019, according to a Reuters report in late June.
Separately, the cabinet meeting discussed boosting domestic consumption, with policymakers vowing to systematically remove unreasonable restrictions that hinder household spending and optimise policies for a consumer goods trade-in programme.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Straits Times
16 minutes ago
- Straits Times
China says successful US trade talks make return to tariff war unnecessary
Find out what's new on ST website and app. FILE PHOTO: Chinese Commerce Minister Wang Wentao arrives at Lancaster House, on the second day scheduled for trade talks between the U.S. and China, in London, Britain, June 10, 2025. REUTERS/Toby Melville/File Photo BEIJING - China wants to bring its trade ties with the U.S. back to a stable footing, its commerce minister said, adding that recent talks in Europe showed there was no need for a tariff war while urging the U.S. to act in a manner befitting of a superpower. Commerce Minister Wang Wentao told reporters on Friday that the "ups and downs" in the two countries' relationship underscored their economic interdependence. Asked about the United States specifically, Wang said: "Major countries should act like major countries. They must shoulder their responsibilities," adding that China would protect its national interests. China is facing an August 12 deadline to reach a durable tariff agreement with the United States, after Beijing and Washington reached a preliminary deal last month to end weeks of escalating tit-for-tat tariffs. If no deal is reached, global supply chains could face renewed turmoil from duties exceeding 100%. Wang said negotiations in Geneva and London earlier this year demonstrated there was no need to return to a trade war. "Practice has proven that through dialogue and consultation, with leadership and communication at the highest levels, we can properly manage contradictions and resolve our differences," he said. Top stories Swipe. Select. Stay informed. Singapore 30% of aviation jobs could be redesigned due to AI, automation; $200m fund to support workers: CAAS Singapore Alleged Kpod peddler filmed trying to flee raid in Bishan charged with 6 offences Business Global fintech firms expanding in Singapore with larger offices, APAC hubs Singapore UOB awarded $17.7m in civil suit against Lippo Marina Collection over inflated housing loans Life Kinokuniya opens third bookstore in Raffles City, weeks ahead of schedule Business DBS shares rally to a new record as STI clocks yet another high Singapore 5 foreigners charged over scheme to deliberately get arrested in S'pore to sell sex drugs Life F1 Singapore Grand Prix: Music acts Lewis Capaldi, Clean Bandit, Spice Girls' Melanie C added "We will continue to strengthen dialogue and communication, deepen consensus, reduce misunderstandings, enhance cooperation, to jointly put China-U.S. economic and trade relations back on track to achieve healthy, stable and sustainable development." China's rare earths exports rose 32% month-on-month in June, customs data showed on Monday, in a sign that agreements struck last month in London to free up the flow of the metals were possibly bearing fruit. Chipmaker Nvidia will also resume selling its H20 AI chips to China, Chief Executive Jensen Huang said at an event in Beijing this week, a move U.S. Commerce Secretary Howard Lutnick said was also part of negotiations on rare earths. Wang said on Friday that he had met Huang the previous day, describing the meeting as evidence that "as the dust settles, everyone has come to the conclusion - especially the U.S. side - that forced decoupling is impossible." Wang said the current overall tariff level imposed by the U.S. on China was "still high" at 53.6%. Analysts have said that additional duties exceeding 35% will probably wipe out Chinese manufacturers' profit margins. "Both sides have come to understand that they need each other, as lots of the goods and services that we exchange are irreplaceable, or at least difficult to exchange in the short-term," Wang said. "China does not want a trade war, but it is not afraid of one," he reiterated. REUTERS
CNA
an hour ago
- CNA
Asian shares follow Wall Street higher, yen weak ahead of Japan vote
SYDNEY :Asian shares tracked Wall Street higher on Friday as still-strong U.S. economic data and robust corporate earnings offset tariff worries, while the yen headed toward a second successive week of loss ahead of Japan's upper house election. Overnight, the S&P 500 and the Nasdaq again closed at record highs as U.S. data including retail sales and jobless claims beat forecasts, indicating a modest improvement in the economy that should give the Federal Reserve time to gauge the inflation impact from higher U.S. tariffs. Streaming giant Netflix beat Wall Street's lofty expectations for second-quarter earnings in part due to a weaker U.S. dollar. Its share price, however, fell 1.8 per cent in after-hours trading, with analysts saying much of the growth had already been priced in. European share markets are set for a higher open, with EUROSTOXX 50 futures 0.4 per cent higher. Wall Street futures were up 0.2 per cent. On Friday, MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.7 per cent to its highest since late 2021, bringing the weekly gain to 1.5 per cent. Japan's Nikkei, however, slipped 0.2 per cent, and the yen slipped 0.1 per cent to 148.77 per dollar and was down about 0.7 per cent this week after polls showed Prime Minister Shigeru Ishiba's coalition was in danger of losing its majority in the election on Sunday. Data on Friday showed Japan's core inflation slowed in June due to temporary cuts in utility bills but stayed beyond the central bank's 2 per cent target. The rising cost of living, including the soaring price of rice, is among the reasons for Ishiba's declining popularity. "If PM Ishiba decides to resign on an election loss, USDJPY could easily break above 149.7 as it would usher in an initial period of political turbulence," said Jayati Bharadwaj, head of FX strategy at TD Securities. "JPY could reverse the recent dramatic weakness if the ruling coalition wins and is able to make swift progress on a trade deal with Trump." Chinese blue-chips rose 0.4 per cent while Hong Kong's Hang Seng index gained 0.8 per cent. The Tapei-listed shares of TSMC, the world's main producer of advanced AI chips, rose 1.3 per cent after posting record quarterly profit, though it said future income might be affected by U.S. tariffs. In the foreign exchange market, U.S. the dollar was on the back foot on Friday, having bounced 0.3 per cent overnight against major peers on the strong economic data. For the week, it is headed for a second successive gain of 0.7 per cent, bouncing further from a 3-1/2 year low hit over two weeks ago. Fed Governor Christopher Waller said on Thursday he continues to believe the central bank should cut interest rates at the end of this month, though most officials who have spoken publicly have signalled no desire to move. Fed funds futures imply next to no chance of a move on July 30, while a September rate cut is just about 62 per cent priced in. Treasury yields were slightly lower in Asia. Benchmark 10-year U.S. Treasury yields slipped 3 basis points to 4.4375 per cent, having moved little overnight. Two-year yields also edged 2 bps lower to 3.8944 per cent. Oil prices extended gains on Friday, after drones strikes on Iraqi Kurdistan oil fields fuelled supply concerns. U.S. crude rose 0.4 per cent to $67.79 per barrel and Brent also rose 0.4 per cent to $69.77 a barrel. They, however, lost about 0.7 per cent for the week.
CNA
an hour ago
- CNA
China mulls economy-boosting measures to counter 'severe situation'
Asked specifically about China's reliance on exports, Wang suggested the government was preparing policies to "further stimulate the momentum of our consumption development". "China's economy is improving, and the long-term fundamentals have not changed, the consumption market's characteristics of great potential, strong resilience and vitality have not changed," he said. Wang also namechecked Beijing-based toymaker Pop Mart, whose Labubu monster dolls have become a must-have item internationally, adorning the handbags of celebrities such as Rihanna and Dua Lipa. "We are also promoting new forms of consumption ... for example, Pop Mart, these kinds of new trends, new fashions and styles ... the Labubu phenomenon has swept the world," he said. US DECOUPLING "IMPOSSIBLE" Beijing is battling to shift towards a growth model propelled more by domestic demand than the traditional key drivers of infrastructure investment, manufacturing and exports. That desired transformation has become more urgent since Donald Trump came to office. The US president has imposed tariffs on China and most other major trading partners, upending trade norms and endangering Beijing's exports at a time it needs them more than ever to stimulate economic activity. The two superpowers have sought to de-escalate their row after reaching a framework for a deal at talks in London last month, but observers warn of lingering uncertainty. Wang said on Friday that despite "storms and rain", Washington remained an important trading partner. Even though China-US trade has declined proportionally for each country, overall bilateral trade has remained stable, Wang said. The firm economic and popular basis for US-China cooperation "makes artificial decoupling and severing supply chains impossible", he said. Yet an inconsistent tune has "severely impacted and disrupted normal trade cooperation between China and the US".
