Two Sessions Voices | CPPCC Member Li Yao: Tackling the Cutthroat Competition in Chongqing’s Motorcycle and General Machinery Industries

“Chongqing’s motorcycle production and sales account for over a quarter of the national total, and its general machinery industry is also among the top in China. But both industries are now trapped in fierce internal competition,” said Li Yao, member of the Chongqing CPPCC, president of the Chongqing Chamber of Import and Export, and executive vice president of Zongshen Industrial Group, during this year’s Two Sessions.

Li brought a proposal titled “Suggestions on Curbing the Vicious Internal Competition in Chongqing’s Motorcycle and General Machinery Industries.”

For decades, Chongqing has led China’s motorcycle industry, home to well-known brands like Zongshen, Loncin, Lifan, and Yinxiang. These companies still rank among the nation’s top ten in production, sales, and exports. The city is also a major hub for general machinery manufacturing, with more than 500 companies producing over 14 million units annually—about half of the country’s total.

“Chongqing has always placed great emphasis on supporting the motorcycle and general machinery sectors, even naming them as key focus industries in the city’s ‘33618’ plan,” Li said. “However, both industries have become highly competitive to the point of self-harm.”

Taking motorcycles as an example, Li noted that competition has escalated from models and prices to configurations, accessories, and custom modifications. “Price wars” have caused stagnation in sales prices over the past few years, while product similarity and low-end positioning have worsened.

To break this cycle, Li Yao offered five suggestions:

1. Encourage companies to go global together.
   The government should support leading motorcycle and general machinery companies in Chongqing—along with their key suppliers—to expand overseas, tapping into larger global markets and easing local overcapacity.

2. Increase price transparency.
   To address destructive competition, Li proposed that city authorities regularly publish reference data on production costs and price structures for standard motorcycle and general machinery products.

3. Promote innovation and differentiation.
   The government should strengthen support for R&D, technology upgrades, and digital transformation. Companies should focus on developing unique, high-value products tailored to different use cases instead of competing on price alone.

4. Enhance intellectual property protection.
   Law enforcement should crack down harder on counterfeit and low-quality goods, maintain fair market order, and protect the innovation drive of legitimate companies.

5. Improve access to financing.
   Financial institutions should be encouraged to develop targeted financial products to help motorcycle and general machinery manufacturers secure funding more easily.