Beijing warns carmakers: stop killing your profitability hopes by selling below cost
South China Morning Post
by Themis Qi,Daniel RenFebruary 13, 2026
China has banned carmakers from selling new vehicles for less than it costs to make them, including through discounts and subsidies, as regulators continue trying to smother a persistent price war that has sent hopes of profitability up in smoke for most producers.
In “pricing guidance” released on Thursday, the State Administration for Market Regulation (SAMR) listed a series of tactics that would result in below-cost pricing for new vehicles, warning that carmakers using any of them would face...
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Originally published on South China Morning Post on 2/13/2026