- China to mandate EV export permits from Jan 2026 for automakers.
- New rules aim to curb oversupply, price wars, and unhealthy competition.
- EVs already make up over 50% of China’s passenger car sales.
China strengthens regulations for exporting electric vehicles by mandating that automakers secure electric vehicle export permits starting next year, the Commerce Ministry announced on Friday.
The ministry stated that the export licenses, necessary starting Jan. 1, aim to “promote the healthy development of the new energy vehicle trade.” The regulations arrive as Beijing seeks to regulate the electric vehicle industry in the largest auto market globally.
China is the top exporter of cars, shipping around 5.5 million vehicles overseas last year, with almost 40% being electric vehicles.
The United States and European Union countries are among those that have implemented tariffs on electric vehicles produced in China, arguing that government subsidies have provided them with an unfair edge.
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In the past few months, Beijing has been working to tackle worries regarding oversupply and a damaging price conflict among its EV manufacturers. Critics argue that the EV market suffers from "involution," a term referring to businesses and sectors involved in futile competition that yields no progress.
Notably, market leader BYD faced backlash earlier this year after it initiated a new series of price reductions, prompting several rivals to do the same. Wei Jianjun, the head of Great Wall Motors, cautioned that the industry might face dangers if it maintains its current path.
However, China's internal EV market experienced unprecedented sales in the first half of 2025, with electric vehicles accounting for over 50% of overall passenger vehicle sales.