China's Cabinet Tackles 'Irrational' Competition in EV Market

In a decisive move, China's cabinet has vowed to regulate the electric vehicle industry's 'irrational' competition, focusing on cost control and price monitoring. The announcement came following a cabinet meeting presided over by Premier Li Qiang, amid an intensifying two-year price war in the auto sector.

The cabinet emphasized the need for high-quality development in electric vehicles, outlining comprehensive short- and long-term strategies to tackle the industry's challenges. There has been a growing call from industry leaders to curb excessive competition that threatens sustainable growth.

Additionally, China's cabinet addressed the issue of vehicle oversupply and strategies to boost domestic consumption. By easing restrictions and optimizing trade-in policies, officials hope to revitalize household spending and stabilize the market dynamics.

(With inputs from agencies.)