China Steps Up Price-War Scrutiny as Cars Keep Getting Cheaper

China’s new restrictions on car discounts signal the government is cranking up its scrutiny of excessive competition in the local auto industry after previous attempts failed to stem falling vehicle prices.

The State Administration for Market Regulation announced a set of proposed guidelines late Friday, including measures that would prevent manufacturers from pricing cars below the cost of production, and to stop dealers from offering discounts or rebates that would effectively bring down vehicle prices below cost.