What happened
At the 2026 World Power Battery Conference, Liu Min, chief engineer of the State Administration for Market Regulation, said the agency has brought the prevention of “involution-style” competition into its comprehensive rectification framework.
Liu noted that the regulator is working with the Ministry of Industry and Information Technology, the National Development and Reform Commission and other departments on capacity warnings, price competition standards and product quality supervision.
The goal, according to Liu, is to shape a market environment where quality is rewarded with fair pricing and competition is conducted on an even playing field.
Why it matters
The statement signals that Chinese authorities are increasingly treating excessive price wars and redundant capacity as systemic problems requiring inter-agency coordination, rather than isolated market issues.
By linking anti-involution measures to product quality and fair pricing, the regulator is aiming to shift industry focus from sheer scale expansion toward more sustainable, value-based competition.
For the power battery sector—a field central to the conference where it was announced—this could mean more scrutiny of expansion plans and pricing behavior in the coming period.
Key facts
Liu Min is the chief engineer of China’s State Administration for Market Regulation.
The announcement was made at the 2026 World Power Battery Conference.
Preventing “involution-style” competition has been incorporated into a comprehensive rectification framework.
The regulator is cooperating with the Ministry of Industry and Information Technology, the National Development and Reform Commission and other departments.
Measures include capacity forecasting and regulation, standardizing price competition, and strengthening product quality supervision.
What to watch next
Whether the comprehensive rectification framework will produce specific enforcement actions or guidelines in the power battery sector.
How the stated goal of a “good quality, good price” market environment translates into actual regulatory practice across industries prone to overcapacity.
Possible coordination between agencies to implement capacity early-warning systems in other manufacturing sectors beyond batteries.