(Jan 16): Chinese regulators warned of “severe penalties” against automakers after they started a new round of price cuts, defying a campaign by authorities to curb excessive competition. They warned of “severe penalties” against companies for violations, according to a statement by MIIT on Thursday. The meeting was the second this week during which authorities spoke about restoring order to a market that has been plagued by a long-running price war. Despite repeated warnings, carmakers have found it difficult to stop price discounting as they contend with a slump in demand from the scaling back of state subsidies and the slowing economy. Other than slashing prices, some automakers have offered incentives such as interest-free loans to entice buyers.

Source: The Edge Markets January 16, 2026 04:20 UTC