Premier Li Qiang has called for stricter regulations on electric vehicle prices amid deflationary pressures and destructive competition in the industry.

Li Qiang has called for close price monitoring in the electric vehicle sector to combat extreme competition affecting profits and supply chains. China's industrial profits fell by 9.1% in May, with the auto sector posting an 11.9% drop in profits. The premier stressed the need to boost domestic consumption and improve support programs for consumer goods. Economists warn that measures to combat overcapacity could lead to production cuts, affecting jobs.