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The Guardian - UK
The Guardian - UK
Business
Amy Hawkins and Helen Davidson

China warns EV makers to stop price-cutting to protect the economy

Big number of electric cars parked in foreground with a large ship docked in background
BYD electric vehicles at the port of Lianyungang, in Jiangsu province, China, before being loaded on to a vehicle carrier for export. Photograph: China Daily/Reuters

China is urging its electric vehicle industry to stop cutting prices and rein in production amid fears that persistent deflation is imperilling economic growth.

In recent months Chinese officials have talked repeatedly of the need to combat “involution” in sectors suffering from overcapacity, such as EVs, referring to the phenomenon of investing more effort and money for diminishing returns.

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