A draft of the first antitrust guideline for the automobile sector is expected to be finished later this month.
According to the National Development and Reform Commission, it will be a guideline to crack down a monopoly present in the Chinese auto market.
It will also cover price-fixing violations by car makers selling products online.
With the rise of online retailers such as Alibaba and JD.com, consumers are looking for better deals online, and cars are no exception.
This has caused controversy as it is unclear what sort of practices is considered fair play.
The draft will be reviewed by the Anti-Monopoly Commission under the State Council by June next year.
For more on this topic, CRI's Spencer Musick spoke with Gao Shang, analyst with Guantong Futures.