FX.co ★ China to Curb EV Price War and Boost Consumption

China's cabinet, during a meeting on Wednesday led by Premier Li Qiang, committed to managing "irrational" competition within the electric vehicle (EV) industry, as reported by state broadcaster CCTV. This initiative comes in response to a two-year period of intense price competition in the world's largest auto market. The government intends to implement more rigorous cost investigations and enhance price monitoring. Although specific details are scarce, the cabinet outlined both immediate and long-term strategies aimed at promoting high-quality growth in the sector. Automakers have been encouraged to adhere to payment agreements with suppliers, while efforts to support innovation and quality improvements will be prioritized. Regulatory authorities caution that aggressive pricing tactics could jeopardize the industry's long-term viability. In a related development, the cabinet revealed measures to boost domestic consumption by relaxing restrictions on household expenditure and refining the consumer goods trade-in program.