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Topshot -Chinese Prime Minister Lee Ten, a speech during the Persian Gulf Cooperation Council (GCC) -an official dinner in China, an economic forum after the 46th Southeast Asia (ASEAN) Association in Kuala -Lumpur on May 27, 2025.
Vincent Tyen | AFP | Gets the image
Chinese Prime Minister Lee Ten called for more rigid pricing in the electric vehicle sector during Meeting a high -level On Wednesday, Beijing sought to enter the price wars that expose deflationary pressure in the economy.
Having allocated the electrical sector of electric vehicles in the country, Lee called for the cost of costs and prices monitoring. He also called on large automakers to pay the suppliers in a timely manner, practicing great self -discipline in the price determination.
Lee should increase its competitiveness through technological innovation and quality upgrades rather than excessive price decline, Lee said.
Concerns have long been concerned about excessive support and bruises in the price wars came to the forefront of Chinese politicians in recent weeks, seeking what has been described as “involution”- Hard but often devastating competition – In particular, the sectors that crashed with excess power, such as EVS, solar panels and steel bars.
A sign that the strengthened price wars participated plunged to 9.1% In May. Factory gate prices also decreased by 2.8% in the first six months of the year compared to a year ago, official data showed.
Although the income is a Chinese car decreased by 11.9% per year In May, car sales in the country increased by 11.7% over the same period, reports Chinese Car Manufacturers AssociationWith more than half of them, new energy vehicles have emerged.
Automobile Association in May called for stopping “Failure Competition”, “” Which, he said, bitten the profitability of the enterprises and threatened the safety of the supply chain.
Semoriya’s demand for consumers is also intense profit for businesses. Lee also called for new efforts to enhance domestic consumption, remove “unjustified restrictions that thwart the cost of households” and optimize the policy for the consumer goods program.
Deputy Head of the Bureau of Statistics Shan Line said at Click Briefing on Tuesday The fact that progress has been made in the solar panel, cement and automotive industry in regulating prices without government intervention.
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Don’t cut back back
Even when China moves its political messages to solve price wars, economists point out that Beijing needs to balance the task of stopping the excess proposal, without delaying growth and not threatening jobs, especially because the intensive trading war with the United States raises doubts about the external demand for their goods.
Nomura Bank economists suggested that attempts to resolve excess power will provide significant production cuts for manufacturers selling products.
However, restrained investments entering the industrial sectors and production will probably lead to additional craving for the economy.
“Production, reduced, inevitably comes at the expense of growth and jobs,” said Neo van, heading the Chinese economist and strategist at Evercore ISI, believing that Beijing is unlikely to significantly reduce power.
“Ensuring the growth and savings of jobs has a higher priority for Beijing than correction of disinfection or deflation,” Van added, emphasizing that “the votes still sound like a slogan for a short-lived campaign, not a prelude to any reform,” Van added.
China reported on Tuesday that its economic growth has won expectations Expanding 5.2% in the second quarterPutting the country on the way to achieving an official growth goal within 5%.
While some companies of different industries justify It is planned to reduce production, it cannot translate into a broader shortage of supplies, said Tianchen SU, senior economist.
“There are always people who want to expand their market share with a low price. Even if the price alliance is formed, the firms can still betray the alliance and blow the competitors,” SE said.
