Recently, a policy adjustment in the field of foreign trade has attracted widespread attention.
There are rumors on the Internet that “export tax rebate subsidies have been cancelled, and industry blood transfusions worth nearly 70 billion per year have been suspended.” However, in fact, there is a cognitive bias in this.
Export tax rebates are not fiscal subsidies, but internationally accepted tax rules. This adjustment is a standardization and optimization of the tax rebate mechanism. Its core purpose is to purify the foreign trade environment and promote high-quality development of the industry. It is not a simple “stop” support.
The essence of export tax rebates is to refund the value-added tax and consumption tax paid during the domestic production and circulation of exported goods, to avoid double taxation of goods in the international market, and to ensure that our products can participate in international competition fairly. This is a common practice in global trade and is not an additional financial “blood transfusion”.
The so-called “cancellation of nearly 70 billion subsidies” is actually to rectify some non-compliant tax refund practices and tax refund chaos in low value-added industries, clean up false tax refunds, illegal arbitrage and other issues, so that tax preferences can truly benefit foreign trade companies that operate in compliance with regulations.
For a long time, some foreign trade companies with low quality and low price, relying on tax rebate differences to survive, have relied on price wars to seize the market, which not only squeezes the living space of formal companies, but also easily triggers international trade frictions.
In order to obtain the tax rebate difference, these companies do not hesitate to reduce product quality and impact the market with low prices, causing the entire industry to fall into a vicious circle of vicious competition.
This policy adjustment is equivalent to “removing the fake and retaining the real” for the industry, forcing companies to get rid of their over-reliance on tax rebates and shift to the core tracks of technology research and development, product upgrades, and brand building.
For foreign trade companies that operate in compliance with regulations, this adjustment is not negative.
On the one hand, after the chaos is rectified, market competition will be fairer, and the product advantages and technological advantages of high-quality enterprises can be fully highlighted.
In a market environment of fair competition, enterprises can rely on their own strength to explore the market, rather than being interfered by those enterprises that rely on unfair means to obtain profits.
On the other hand, policy optimization will guide resources to tilt toward industries with high added value and high technology content, helping the foreign trade structure shift from “quantitative expansion” to “qualitative improvement.”
This means that companies have more opportunities to develop high-end industries and improve the added value and competitiveness of their products.
The long-term development of the foreign trade industry has never relied on tax incentives, but on its own core competitiveness.
Enterprises should seize the opportunity of policy adjustments to deepen product research and development, expand emerging markets, build independent brands, and at the same time take into account the integrated development of domestic and foreign trade to build a more stable operating pattern.
Only by continuously improving their core competitiveness can enterprises remain invincible in the fierce international market competition.
This optimization of the export tax rebate mechanism is an important signal for the transformation and upgrading of the foreign trade industry.
Only by saying goodbye to extensive development and abandoning the old path of low-price competition can we gain a firm foothold in the international market. This is both policy guidance and an inevitable choice for foreign trade companies to achieve long-term development.
In the future development, foreign trade enterprises should actively adapt to policy adjustments, continue to innovate and develop, and make greater contributions to the prosperity of my country’s foreign trade industry.
