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Energy storage sector tested as China sets 60-day payment cap in anti-involution campaign

June 30, 2026
ChinaTechNews.com Staff
Beijing’s campaign to curb disorderly low-price market competition – neijuan in Chinese or involution – has reached the energy storage sector, with new rules shortening payment cycles and the financial pressure expected to ripple through leading players.

A payment cap, released by the China Automotive Battery Innovation Alliance (Cabia) and the China Energy Storage Alliance on Monday, covers both electric vehicle (EV) and energy storage batteries and aims to build a mutually beneficial industrial ecosystem.

Under the guidelines, buyers of materials and components must complete inspection and acceptance within seven working days of receipt, while EV and energy storage battery makers must limit payment terms to small and medium-sized enterprise suppliers to a maximum of 60 calendar days from delivery or formal acceptance.

The requirements were consistent with China’s anti-involution regulatory framework, which had been elevated to a national strategy to shift key industrial chains from quantity-driven growth to quality and restore pricing power, said Jing Yang, director of Asia-Pacific corporate ratings at Fitch Ratings.
Eleven key industry players including CATL and BYD’s Fudi Battery have signalled commitment to the payment initiative. Photo: AFP
Eleven key industry players including CATL and BYD’s Fudi Battery have signalled commitment to the payment initiative. Photo: AFP

“More stringent payment requirements may modestly pressure downstream players’ flexibility to extend payable days,” she said, adding that Fitch did not expect immediate financial impacts.

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