SAMR Cracks Down on "Involutionary" Competition as Automakers and Suppliers Accelerate Global Expansion

On March 30, China's State Administration for Market Regulation (SAMR) issued a notice requiring further implementation of the *Anti-Unfair Competition Law of the People's Republic of China*, with a focus on rectifying "cutthroat" or "involutionary" competition in sectors including platform economy, photovoltaics, lithium batteries, and new energy vehicles. The notice explicitly stated that authorities will investigate and penalize platform enterprises that disrupt market order through tactics such as manipulating search rankings, algorithmic control, restricting traffic, and forcing merchants into low-price promotions. It emphasized that case-by-case determinations should comprehensively consider factors including product characteristics, production scale, market conditions, technical efficiency, and quality. On the same day, Baolong Technology officially commenced operations at its Topseal Thailand facility in Chachoengsao Province, Thailand. The plant primarily manufactures automotive rubber and metal valve stems. Completed and fully ramped up to full production capacity in a short timeframe, the facility is set to become a key node in Baolong’s global supply chain. Also on March 30, Nexteer Automotive held an inauguration ceremony for its new manufacturing plant in Rayong, Thailand—the company’s first manufacturing base in the country. Initially focused on producing Column-Electric Power Steering (CEPS) systems, the plant aims to enhance Nexteer’s responsiveness to Southeast Asian customers. With this addition, Nexteer now operates 27 manufacturing facilities, five technology centers, and 13 customer service centers globally. On March 31, onsemi announced Shanghai as its Greater China headquarters and plans to appoint a General Manager for China as well as Head of Systems Engineering for China. The company outlined four strategic pillars: “Designed in China, Made in China, Deeply Rooted in China, and Going Global.” Onsemi is continuously expanding its R&D team in Shanghai, having already established eight joint application labs and planning to add three more, with a focus on localized solutions such as AI power systems. Additionally, through partnerships with local players, the company is building an integrated front-end and back-end manufacturing ecosystem to drive the global expansion of its gallium nitride (GaN) products. On the same day, senior executives at Chery Automobile revealed the company plans to begin production at its Roslyn plant in South Africa—acquired from Nissan—by the end of 2027 at the latest. Over the next 12 to 18 months, Chery will retool the facility to simultaneously produce battery electric vehicles (BEVs), plug-in hybrid electric vehicles (PHEVs), and internal combustion engine (ICE) models, targeting exports to both African and European markets. Chery has already built a network of 150 dealerships in South Africa, achieving annual sales of approximately 50,000 units, and intends to develop a localized automotive parts supply chain in the region. Additionally, reports indicate that Stellantis is in preliminary talks with Leapmotor to explore using Stellantis’ idle Brampton, Ontario, Canada plant for electric vehicle production. Originally slated to produce Jeep SUVs, the plant’s production plan was canceled due to U.S. tariff hikes. If the collaboration materializes, it would mark the first major investment by a Chinese automaker in Canada following the conclusion of a bilateral agreement aimed at reducing EV tariffs.