China’s market regulator has told companies including electric car maker BYD and battery giant Contemporary Amperex Technology Ltd (CATL) to compete healthily when expanding overseas, amid growing suspicions of unfair competition, subsidies and dumping aimed at Chinese companies in global markets.
Chinese companies should balance their competitive behavior and “build a healthy competitive environment” in their overseas expansion, the State Administration of Market Regulation said in an official reading of its first fair competition conference of the year with corporate representatives on Thursday.
Attendees included representatives from BYD, CATLChery Automobile, Didi Chuxing and Meituan, as well as two state-owned companies involved in the Belt and Road Initiative – mining giant China Minmetals and the world’s largest engineering contractor, China State Construction Engineering Corporation.
“We will strengthen anti-trust enforcement, improve compliance guidance and deal with ‘changing style’ competition,” Meng Yang, vice minister of administration, told the conference.
He added that the authorities will also increase institutional transparency in the field of competition and increase support so that companies expanding abroad can achieve high growth.
Following high-profile calls to fight “revolutionary style” competition – meaning excessive competition that sees companies invest more but earn less revenue, squeeze margins and push companies to either expand overseas or cut costs to remain competitive – the market regulator has been convening a regular forum on fair competition for companies since last year. Thursday’s meeting was the first to address the competitive challenges facing Chinese companies expanding overseas.
