China Moves to Address “Irrational Competition” as Price War Threatens Domestic EV Industry
As a fierce price war threatens the trajectory of the electric vehicle industry in China, officials are considering imposing strict policies to curb what they call “irrational competition” within the industry. The Chinese government has supported EV development by pouring billions of dollars into the industry over the past decade in order to enable local firms to develop new energy vehicles (NEVs) that can compete globally. This support has allowed many startups to sprout in the industry and develop a variety of low-cost EVs that are competing for dominance on the local market. However, the competition between those brands has…