General Motors CEO Mary Barra warned that China’s electric vehicle market is not only embroiled in a fierce price war but also suffers from overproduction, complicating competition for automakers.

Speaking to The Verge’s Nilay Patel on the “Decoder” podcast Wednesday, Barra said: “Right now, there is an incredible price war going on. You can’t have over 100 different OEMs in a country trying to compete, especially now that they’re competing on price.”

She added that overcapacity in China is driving manufacturers to export to other markets, often while benefiting from heavy subsidies.

On GM’s strategy, Barra emphasized that the company will balance compliance with China’s regulatory and safety standards while regularly benchmarking against Chinese competitors to stay competitive.