China’s carmakers are resorting to tricks to inflate their vehicle sales and Beijing has had enough

Spectators look at BYD Seagull electric cars at the 21st Changchun International Automobile Expo in Changchun last July. (Credit: CFOTO—Future Publishing via Getty Images)

• Beijing warned the practice of selling new cars with zero miles at a sharp discount in the used car market is just the latest example of “involution”, when domestic companies drag themselves down collectively in a race to the bottom.

China’s ruling Communist Party has warned domestic carmakers to stop using sales-boosting tricks—or risk triggering a vicious cycle that could drag down the entire industry.