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Reality check for China’s carmakers as authorities tell them to focus on quality, not tech

China’s shrinking car market has received another reality check as regulators step in to police the hi-tech offerings that carmakers use to drive sales.
A nationwide…

By Samantha Johnson / August 29, 2026
China’s shrinking car market has received another reality check as regulators step in to police the hi-tech offerings that carmakers use to drive sales.

A nationwide inspection campaign assessing the quality of Chinese-made cars that was announced this week would see some consumers shelve purchase plans, exacerbating a bearish outlook for the country’s auto sector, dealers and analysts said.

Vice-Minister of Industry and Information Technology Xin Guobin told a news conference in Beijing on Wednesday that new auto products and technologies would be barred from entering the market unless they passed stricter approval procedures.

“Some reckless innovative designs were installed in vehicles without sufficient testing and verification,” Xin said. “Several incidents attracted public attention due to concerns about the cars’ quality and the safety of autonomous driving technology.”

“Several accidents and growing consumer complaints have spurred the regulators into action,” said Gao Shen, an independent analyst in Shanghai. “With improved oversight, carmakers will have to shift their focus from making their vehicles more intelligent to ensuring quality.”

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