China’s Auto Price War Exposes Flaws in State-Controlled Market—What It Means for America

China’s latest attempt to control a brutal price war in its auto industry exposes the ongoing consequences of state-dominated markets and reckless economic management. When passenger car sales plunged nearly 20% in January year-over-year—the steepest drop in almost two years—it was more than a temporary blip; it underscored how government overreach and market distortions can fuel instability on a massive scale. Why does this matter to America? China’s State Administration for Market Regulation responded with new guidelines banning automakers from slashing car prices below production costs to outcompete rivals or monopolize the market. This isn’t just about fair competition; it’s...