China’s top regulators gathered battery giants CATL and BYD to curb price wars and unchecked capacity growth, urging quality over price. Learn more.
On January 6, China’s leading industry regulators convened a closed‑door meeting with the country’s biggest battery and power‑storage players, including CATL, BYD, Gotion High‑Tech, and system integrators such as Trina Solar Energy. The gathering signals a high‑level push to rein in fierce price competition and unchecked capacity expansion in an industry that now commands nearly 70% of the global market.
Who attended the summit?
The Ministry of Industry and Information Technology (MIIT) called together the National Development and Reform Commission (NDRC), the State Administration for Market Regulation (SAMR) and the National Energy Administration (NEA). Participants included battery giants Contemporary Amperex Technology (CATL), BYD, China Aviation Lithium Battery (CALB), Gotion High‑Tech, EVE Energy, Sunwoda and SVOLT. Supply‑chain suppliers such as HiNa New Energy, Zhejiang Jiyao Tongxing Energy Technology and Cornex New Energy were also present, along with system‑integration firms CRRC Zhuzhou Institute, HyperStrong New Energy Technology and Trina Solar Energy Storage.
Key measures announced
MIIT outlined a tightening of market supervision, including stricter enforcement of pricing rules, intensified quality inspections, and harsher penalties for intellectual‑property violations. Regulators also pledged to develop a tiered early‑warning system for production‑capacity risks, boosting macro‑level coordination between central and local authorities to prevent surplus projects.
Industry associations are being urged to guide companies toward realistic capacity planning, fostering a market environment defined by fair competition and “quality over price.” The government highlighted the need for voluntary self‑discipline across the sector.
Why the crackdown now?
China’s battery and energy‑storage industry has grown explosively, reinforcing its international competitive edge at every stage. However, unchecked expansion, relentless low‑price battles, and other irrational practices threaten market order and the long‑term sustainability of the sector.
According to the latest data from South‑Korea‑based market analyst SNE Research, six Chinese firms rank among the world’s top ten in installed storage capacity for the period January–November 2025. Collectively, they hold 69.4% of the global market share, up more than three percentage points from the same period in 2024.
Looking ahead
Regulators stressed that while China will continue to leverage its scale to dominate the global battery arena, growth must be orderly and innovation‑driven. The coordinated effort between central ministries, local governments, industry bodies and leading manufacturers aims to curb overcapacity, protect intellectual property, and ensure that quality, safety and sustainability become the defining pillars of the Chinese battery market.