China Tightens Rules on EV Export Permits, Amid Global Trade Tensions

China is set to impose stricter export regulations on electric vehicles by mandating automakers to acquire export permits from January next year, according to the Commerce Ministry. This initiative is part of Beijing's efforts to ensure healthy development within the new energy vehicle sector amid growing oversupply concerns.

The decision arrives as China, the largest car exporter globally, navigates a challenging global trade environment with countries like the United States and European Union imposing tariffs on its EVs, citing unfair subsidies. In 2024, China exported 5.5 million cars, with nearly 40% being electric vehicles.

The domestic EV market, however, has experienced remarkable growth, achieving record sales in the first half of 2025, with EVs constituting more than half of passenger vehicle sales. Nonetheless, industry leaders warn of potential threats if the sector's current trajectory, characterized by unsustainable competition and price wars, persists.

(With inputs from agencies.)