China regulator: anti-involution competition added to rectification framework

This signals a regulatory shift from purely market-driven dynamics toward coordinated oversight in strategic sectors like power batteries. By formally adding anti-involution measures to the rectification framework, authorities aim to curb destructive price wars and prioritize quality over volume, which could reshape competitive incentives for manufacturers. The joint involvement of multiple agencies suggests a more systemic approach to capacity management, making it a key indicator for how industrial policy will balance overcapacity concerns with innovation. Whether this framework extends beyond batteries to other RWA-adjacent industries remains the critical development to monitor.