Chinese Automaker Group Retracts Pledge Against 'Abnormal Pricing Practices' in China

The China Association of Automobile Manufacturers retracted a pledge made by 16 automakers, including Tesla, to refrain from "abnormal pricing practices" in the country's electric-vehicle market. The association stated that the reference to pricing in the pledge was inappropriate and violated antitrust laws. The retraction came after the clause received widespread attention. The association urged companies to follow antitrust laws and rules promoting fair competition and independent pricing. The automakers had joined a signing ceremony in Shanghai, with Tesla being the only foreign brand. The price cuts initiated by Tesla last year led to a price war among major brands as car demand weakened due to Covid restrictions.