Commentary: Zombie Automakers Are Fueling China’s Export Chaos

Chinese regulators recently issued a stern warning to the country’s automakers: Stop the cutthroat competition overseas. The guidelines, released jointly by the Ministry of Commerce and other top agencies, aim to police how Chinese auto companies price, market and manage their foreign operations.

The goal is to prevent a race to the bottom in global markets. Chinese automakers quickly fell in line, issuing pledges to comply. But curing this spillover of excessive competition requires a look at the disease itself. The root cause lies firmly within China’s borders.