China will implement on July 1, 2026, enhanced safety standards targeting both vehicles and batteries, mandating installation of a "physical emergency power cut system" and revising battery criteria to absolutely prevent fires or explosions. Experts say these regulations will block competition based on low-quality products, while building confidence in the insurance industry and used car market. Major manufacturers such as CATL and BYD have announced readiness, with current products already tested under the new standards.
News AgencycarnewschinaReports indicate that as the use of new energy vehicles (NEVs) continues to grow rapidly, China is set to enforce two key national standards on July 1, 2026, to address critical safety concerns.
These standards include the safety requirements for electric vehicles (GB18384—2025) and the safety requirements for electric vehicle traction batteries (GB38031—2025), designed to cover safety at both vehicle and battery levels, according to Economic Information, a state news agency newspaper.
According to data from the China Association of Automobile Manufacturers released on June 10, 2026, China's NEV market rebounded in May with production and sales reaching 1.554 million and 1.496 million units respectively. By the end of 2025, the nationwide NEV ownership reached 43.97 million vehicles.
The new vehicle standard requires installation of a physical power cut mechanism—an emergency one-touch power-off system. This feature replaces the previous reliance on software alone by allowing drivers to physically disconnect the high-voltage circuit from the energy storage system with a single action, enhancing reliability and effectiveness in emergency rescue operations.
The updated battery standard raises safety performance with key improvements as follows:
1. Thermal Safety The requirement has shifted from issuing a 5-minute advance warning of abnormal temperature before fire or explosion to guaranteeing no fire or explosion will occur at all, while still mandating an alarm system. Additionally, smoke emitted must not harm vehicle occupants.
2. Structural Integrity A new underside impact test has been added to evaluate the battery’s ability to withstand damage from collisions beneath the vehicle.
3. Durability A new safety test after 300 fast-charging cycles requires that the battery must not catch fire or explode during simulated external short circuit testing.
Experts cited by Economic Information note that these standards will accelerate industry consolidation, benefiting manufacturers who comply and curbing intense competition fueled by low-quality, cheap products.
Dr. Han Guangshuai of Tongji University commented that these regulations will establish better benchmarks for assessing used car prices and reduce concerns within the insurance industry, potentially addressing issues with high premiums and difficulties in insuring used NEVs.
Wu Kai, a scholar from the Chinese Academy of Engineering and chief scientist at CATL, said at the 2026 Equipment Power Forum that full implementation of these standards is expected to reduce the self-ignition rate of China's NEVs to well below that of traditional internal combustion engine vehicles.
Leading manufacturers have begun aligning with these requirements. CATL reported that all mass-produced battery products for passenger and commercial vehicles passed the new national standards tests as of May 2025. Meanwhile, BYD confirmed that its second-generation Blade Battery has also passed the new standards with performance exceeding the mandatory minimums.
Although industry analysts predict that the new standards may increase battery production costs, potentially affecting the pricing of new models launched after July, final retail prices will depend on each automaker’s cost management and pricing strategies.
Going forward, government agencies including the Ministry of Industry and Information Technology (MIIT) and the State Administration for Market Regulation (SAMR) will continue collaborating to raise safety standards. This includes the recent announcement of a new vehicle fire detector standard (GB47497—2026), focusing on early warning systems for abnormal battery thermal runaway conditions.