Starting from April 2026, the battery export tax rebate rate will be reduced from 9% to 6%, and will be completely canceled in 2027. This policy change marks the end of China’s battery foreign trade industry’s “tax rebate bonus” and a new stage of market-oriented competition centered on technology and brand.
So, after the battery tax rebate is gradually cancelled, where will the foreign trade transformation direction be?
First of all, technology-driven is the key to transformation.
Saying goodbye to low-price competition and turning to technology premium is an inevitable choice.
For example, Zhuhai Guanyu clearly regards promoting technological upgrading and increasing product added value as a response strategy.
In the photovoltaic industry, the application of high-efficiency battery technologies such as TOPCon and BC has allowed leading companies to successfully pass on cost pressures by raising prices of high-power products by 50%.
Technological innovation can not only improve product performance, but also reduce costs from the source.
Silver-less and copper electroplating technologies reduce reliance on precious metals and build technical barriers while hedging tax rebate losses.
Moreover, technological upgrading will reshape the industry structure. Small and medium-sized enterprises that rely on tax rebates for survival may accelerate their liquidation, and companies with technological advantages will dominate pricing power.
Secondly, global layout is also an important transformation direction.
Accelerating the construction of overseas production capacity is an effective way to circumvent trade barriers.
Companies such as CATL and BYD have set up factories in Southeast Asia and the Middle East to reduce risks through localized production.
At the same time, professional cross-border logistics solutions also provide guarantee for “New Three Samples” to go overseas.
For example, Cainiao’s dedicated battery warehouse in Mannheim, Germany, solves problems such as hazardous chemicals compliance warehousing and temperature-controlled distribution, and improves overseas efficiency.
Market diversification is also crucial. Reducing reliance on a single market and exploring emerging markets such as the “Belt and Road Initiative” and the Middle East can diversify risks.
Yangtze River Delta enterprises expand global customers through cross-border e-commerce, and receive an average of 50+ inquiries per day. This is a good example.
In addition, policy support can help companies buffer the pressure.
Enterprises can make full use of short-term strategies and policy tools, seize the policy window period to prioritize delivery of high-margin orders, and lock in remaining tax refund dividends; negotiate price adjustments with overseas customers to reasonably transmit cost pressures.
At the same time, apply for local fiscal and taxation support, such as Guangdong Province’s super deduction policy for R&D expenses, which reduced corporate taxes by more than 100 billion yuan last year; Hunan Province’s export tax rebates use awards to supplement funds to encourage the expansion of exports.
The domestic sales market cannot be ignored. E-commerce platforms can be used to open up the “export to domestic sales” channel and adjust product standards to adapt to domestic demand.
Although this transformation will be accompanied by pain, it will promote the Chinese battery industry to build a more sustainable global competitiveness.
With the joint action of technological upgrading, global layout and policy support, China’s battery foreign trade is expected to achieve new breakthroughs in the new competitive environment.
