Guidance has been provided for overseas production and operation activities in the automotive industry
The Ministry of Commerce, the Ministry of Industry and Information Technology, and the State Administration for Market Regulation recently issued the "Guidelines for Overseas Competition Behavior and Compliance Construction in the Automotive Industry" (hereinafter referred to as the "Guidelines"), which clarify specific requirements for regulating overseas market competition behavior and enhancing local compliance management capabilities overseas. The head of the Cooperation Department of the Ministry of Commerce stated that the "Guidelines" aim to promote the long-term and healthy internationalization of the automotive industry, enhance the compliance and international influence of automotive industry enterprises, and promote international cooperation in the global automotive industry and supply chain.
Standardize competition behavior in overseas markets
The relevant person in charge of the China Automotive Strategy and Policy Research Center (hereinafter referred to as "China Automotive Political Research") of China Automotive Technology Research Center Co., Ltd. stated that the "Guidelines", as the first normative document specifically targeting overseas production and operation activities of the automotive industry, provide direction for enterprises to go abroad with high quality and establish a guiding framework for enhancing the overseas image of Chinese automotive brands.
Focus on practical aspects such as pricing, channels, promotions, and publicity, and standardize competition behavior in overseas markets. The Guidelines propose that enterprises can establish pricing strategies based on cost and guided by international market supply and demand. The relevant person in charge of Zhongqi Political Research stated that this strategy not only prevents dumping pricing below cost, but also prevents excessive and unreasonable premiums. The Guidelines also propose to set clear price gradients for different vehicle configurations of our company, in order to avoid affecting the interests of overseas consumers and brand image due to frequent and significant price fluctuations.
Enhance the overseas local compliance management capability. The Guidelines specify that enterprises should carry out production and operation activities according to the policy orientation of China's foreign investment cooperation and the actual situation of the host country (region), and tailor them to local conditions, ensuring compliance throughout the entire process of inspection, negotiation, construction, production, pricing, procurement, and service. At the same time, we will strengthen the assessment of risks in various aspects such as the political situation, macroeconomic, social security, and automotive industry of the host country (region), and establish and improve the quality management system and after-sales service system for automotive related products in overseas markets.
According to the Guidelines, enterprises should take necessary measures to ensure compliance with various data processing activities such as the collection, use, protection, and cross-border transmission of information related to the Internet of Vehicles and autonomous driving; Standardize the use of intellectual property rights in the fields of appearance design, component production, communication technology, etc; Promote the green and low-carbon transformation of the supply chain and actively fulfill environmental responsibilities.
Improve the comprehensive overseas service system
The person in charge of the Cooperation Department of the Ministry of Commerce stated that the "Guidelines" provide reference for Chinese automotive industry enterprises engaged in international production and operation activities to engage in market competition and other production and operation behaviors overseas. The focus is on overseas marketing and other competitive behaviors of automotive industry enterprises, as well as compliance construction in overseas safety production, quality management, labor protection, data security, etc. General guidelines are proposed for reference by enterprises.
Highlight the attributes of public services. As a concrete achievement of the construction of overseas comprehensive service system, the Guidelines are a public service product for serving automobile industry enterprises to go global, which helps enterprises to timely regulate overseas competition behavior, strengthen compliance construction, and improve international business level and influence.
Emphasize practical application orientation. In the process of formulating the "Guidelines", the current situation of overseas production and operation of Chinese enterprises was fully integrated, and the compliance practice experience of industry leaders was referred to, providing operational guidance for automotive industry enterprises to go global. Encourage enterprises to adapt to local conditions, combine relevant laws and regulations, anti-monopoly policies, market principles, and business practices, and continuously adjust and improve their own work in implementation.
Highlight the concept of win-win cooperation. The Guidelines emphasize the basic principles of compliance with laws and regulations, fair competition, and mutual benefit, which helps guide automobile industry enterprises to actively fulfill their social responsibilities overseas and better integrate into the economic and social development of the host country; Helps to expand high-level open cooperation in the automotive industry, promote deep integration and common development of the global automotive supply chain.
Next, the Ministry of Commerce will continue to work with relevant departments to promote the improvement of the overseas comprehensive service system and better guide the rational and orderly cross-border layout of the automotive industry.
Transitioning from 'scale expansion' to 'value competition'
In recent years, China's automobile industry has achieved practical results in going global. According to customs statistics, by 2025, China will export 8.32 million cars to over 200 countries and regions. Chinese enterprises have invested in the automotive manufacturing industry in over 80 countries and regions, providing global consumers with high-quality, affordable, safe, reliable, green, and low-carbon transportation tools, making positive contributions to the development of the global automotive industry.
The relevant person in charge of China Automotive Political Research Institute stated that the issuance of the "Guidelines" marks a shift in the regulatory approach for overseas operations from simply encouraging exports to systematically guiding and regulating export order and overseas business compliance. Guiding competitive behavior is conducive to building a mutually beneficial channel ecosystem and achieving win-win cooperation between upstream and downstream partners. The requirements for compliance construction are conducive to filling the gaps in systematization and forming a sustainable competitive advantage.
Optimize pricing strategy, shifting from "scale expansion" to "value competition". The relevant person in charge of Zhongqi Political Research believes that reasonable pricing is the cornerstone of brand trust. Car companies should shift their focus of competition towards brand, technology, service, compliance capacity building, and other aspects. Establish a reasonable overseas pricing decision-making mechanism and terminal retail price control rules, adapt to the commercial laws of the host country (region), optimize the distribution agency cooperation system, and reduce channel risks. Localized review of promotional activities shall be conducted in accordance with relevant laws and cultural customs of the host country (region) to ensure the completeness and transparency of promotional rules, prices, and additional conditions.
Deeply cultivate localized development and upgrade from "product going global" to "system going global". Based on our own development and the policy orientation of the host country (region), we will deeply cultivate localized development in areas such as research and development, manufacturing, supply chain, marketing, and after-sales. Establish localized operational capabilities and systematic compliance capabilities that comply with local regulations, culture, and business habits, and form sustainable overseas competitiveness.