China MIIT Power Battery Industry Regulation Tightens Market Discipline

On January 8, China’s Ministry of Industry and Information Technology announced new China MIIT Power Battery Industry Regulation measures after convening a high-level symposium with three other government agencies focused on the power battery and energy storage battery sectors. The meeting signaled a coordinated push to stabilize pricing, raise product quality, and reduce structural risks across China’s rapidly expanding battery ecosystem.
The regulators emphasized that the China MIIT Power Battery Industry Regulation framework will place stronger oversight on both manufacturers and suppliers, ensuring that growth in electric vehicle and energy storage demand is matched by disciplined industrial behavior and compliance with national standards.
China MIIT Power Battery Industry Regulation strengthens market oversight
Under the new regulatory direction, authorities will significantly expand supervision across the entire battery value chain, from manufacturing to market pricing. Enforcement agencies were instructed to intensify inspections related to:

• Pricing compliance and anti-competitive behavior

• Production conformity with approved standards

• Product quality and safety assurance

• Protection of intellectual property rights

This approach aims to remove unfair practices while ensuring that compliant companies are not undercut by non-standard or illegal operations.
China MIIT Power Battery Industry Regulation targets overcapacity risks
Another major focus of the policy is tighter control over industrial capacity expansion. With China’s battery sector growing at unprecedented speed, regulators warned against unchecked investment that could destabilize the market. The symposium called for:

• Improved mechanisms to monitor battery production capacity

• Tiered early-warning systems to detect oversupply risks

• Measures to prevent blind or redundant investment

These steps are intended to align real market demand with sustainable production planning.
Industry self-discipline becomes a central pillar
The authorities also urged battery manufacturers and related enterprises to adopt stronger self-governance. Companies were encouraged to:

• Plan capacity expansion based on realistic market demand

• Prioritize product quality over aggressive price competition

• Support a market environment where high-quality products earn premium value

This shift is designed to foster fair competition while pushing the industry toward higher technological and manufacturing standards.
Stronger coordination between central and local governments
The symposium further highlighted the need for closer collaboration between national regulators and regional authorities. Local governments were directed to:

• Provide better guidance to battery enterprises in their jurisdictions

• Strengthen coordination with central policy goals

• Strictly control redundant or overlapping industrial projects

This alignment aims to prevent fragmented development and ensure that new investments support long-term industry stability.
Together, these measures show that China is moving beyond pure expansion toward a more regulated, quality-driven battery industry, reinforcing its position as a global leader in power and energy storage technologies.