China tightens electric-vehicle exports, requires export permits from 2026
Export licenses will be required beginning Jan. 1, 2026, as Beijing aims to curb oversupply and regulate the global EV trade, the Commerce Ministry says.
China will tighten rules for exporting electric vehicles by requiring automakers to obtain export licenses beginning Jan. 1, 2026, the Commerce Ministry said on Friday. The licenses are intended to “promote the healthy development of the new energy vehicle trade,” the ministry added in a statement.
China remains the world’s largest auto market and the top car exporter, selling about 5.5 million vehicles abroad last year, with roughly 40% of those being electric. The move comes as Beijing seeks to rein in oversupply and a price war that has gripped domestic EV makers in recent months. The United States and European Union have already imposed tariffs on Made-in-China electric vehicles, arguing that subsidies gave Chinese companies an unfair advantage.
Industry observers say the licensing regime could temper export growth for now, while giving regulators a tool to modulate shipments if oversupply returns. In recent months, Beijing has faced criticism of a cycle of intense competition, or involution, in which firms cut prices to gain share. BYD, the market leader, drew some heat earlier this year when it launched a fresh round of price reductions, with several rivals following suit. Wei Jianjun, chairman of Great Wall Motors, warned that continuing price cuts could threaten the long-term health of the sector if the pattern persists.
Domestically, demand for EVs has remained robust. In the first half of 2025, electric vehicles accounted for more than half of total passenger-vehicle sales in China, underscoring the market’s rapid expansion even as regulators seek to tamp down on aggressive pricing and to prevent supply gluts.
The Commerce Ministry provided no detailed timeline beyond the license requirement, and it did not specify the licensing process or transitional arrangements for existing exporters. The new rule signals Beijing’s intent to manage China’s role as a dominant EV producer and exporter while balancing global trade tensions and domestic policy objectives.
Analysts say the policy reflects Beijing’s effort to maintain influence over global EV pricing and trade flows while addressing concerns about subsidies, competition, and market stability. The impact on international automakers and suppliers will depend on how the licensing regime is implemented and whether it curbs or channels export growth in the coming months and years.