China’s Ministry of Industry and Information Technology (MIIT) has sounded the alarm on the brutal price wars tearing through the electric vehicle (EV) market. After months of slashed prices and cutthroat competition, regulators have had enough. The government is stepping in to stop what it calls "involution-style" chaos that's threatening to destabilize one of China’s most strategic industries.
From BYD to Geely and Chery, automakers have been in a frenzy, cutting prices across dozens of EV models to fight for market share. BYD alone triggered a shockwave by dropping prices on more than 20 models in May — and the rest of the industry followed like dominoes.
Now, China’s message is clear: this can't go on. The MIIT is cracking down and vowing tighter regulatory oversight to restore order. It's a big shift — from turbocharging growth to protecting sustainability and long-term value.
The China Association of Automobile Manufacturers (CAAM) is backing the warning, saying profits are sinking fast despite booming EV sales. Experts like Tu Le of Sino Auto Insights are even predicting a “bloodbath” if the price war continues — with smaller brands like Neta and Polestar most at risk.
Can the government cool things down before it's too late? Or are we headed for a market shakeout that rewrites the EV rulebook? Stay tuned. The stakes just got *elec
tric*. ⚡🔥
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