Low Profit Margins in China's Auto Industry; Party Paper Calls for End to Price Wars

China's automotive industry profit margin in Q1 was only 3.2%, well below the 6% manufacturing average. The 'Economic Daily,' a party newspaper, argued that the industry should move away from price wars. The article noted that rising costs for lithium batteries, chips, and metals make price wars unsustainable. Without reasonable profits, there is no funding for R&D. A guideline issued in February prohibits dumping below cost. The article concludes that companies focusing on technology and quality will gain an advantage, while those relying on low prices may be eliminated.