Chinese Premier Li Qiang has pledged to rein in aggressive price-cutting in China's fast-growing electric vehicle (EV) sector, marking a clear pivot from self-regulation to direct government oversight. Speaking at a recent State Council executive meeting.

Officials called for stronger order in the new energy vehicle market to “curb irrational competition” and spur more healthy development, Xinhua said.

“It is necessary to... strengthen industry self-discipline” and help companies enhance their competitiveness through technological innovation, the agency quoted officials as saying.

The China Association of Automobile Manufacturers, a top industry group, warned in May that “disorderly” competition would exacerbate harmful rivalry and hurt growth.

Analyst Bill Bishop wrote in his Sinocism newsletter that the wording of yseterday’s readout could suggest Beijing will place “price controls” on electric vehicles.

“The language on the new energy vehicle (NEV) industry was tough, in another sign that the government is going to intervene to rectify the ‘irrational competition’ in the industry,” he wrote