Starting from April 1, 2026, the foreign trade field will usher in a far-reaching policy change.
The new regulations of the Ministry of Finance and the State Administration of Taxation have been officially implemented. Among them, the export tax rebate for the entire photovoltaic industry chain has been directly cancelled. The battery tax rebate rate has been reduced from 9% to 6%, and will be completely reset to zero in 2027. A total of 271 products will bid farewell to financial subsidies.
This move marks the official end of the country’s policy “nurturing” of the foreign trade industry. It is not a temporary adjustment, but an important strategic shift to promote high-quality economic development.
Today, the photovoltaic industry accounts for more than 70% of the global market. The hard power of China’s manufacturing has been firmly established, and there is no need to rely on tax rebate policies for development.
Previously, export tax rebates, originally intended to support industries, were used by some companies as a bargaining chip in low-price competition, handing over profits to overseas buyers. Domestic workers’ hard work failed to receive reciprocal returns, turning financial subsidies into “wedding dresses for others.”
More importantly, my country has world-class production capacity advantages. This dividend should be kept at home to feed the domestic demand market and improve people’s livelihood, rather than continue to transfer profits to the outside world.
Under policy adjustments, the pattern of the foreign trade industry is about to be reshaped, and the development destiny of different companies will also diverge.
Those small and medium-sized manufacturers that have relied on tax rebates for a long time to maintain their operations will face an existential crisis after losing the support of subsidies, and the speed of industry liquidation will be greatly accelerated.
Powerful foreign trade companies in Jiangsu, Zhejiang and Shanghai that possess core technologies, have independent brands, and have actual bargaining power are facing the best opportunity to increase prices. This is also a clear signal released by the state for the industry, forcing companies to get rid of the vicious cycle of low prices and turn to relying on product quality and core technologies to earn market premiums.
For ordinary people, this policy adjustment is the beginning of hiding wealth among the people.
After corporate profits return to the local area, workers’ wages will increase, domestic consumption will be activated, and industrial upgrading will have more solid support, so that the dividends of industrial development can truly benefit everyone.
From policy subsidies to independent blood production, the development logic of the foreign trade industry is undergoing a fundamental change.
The new regulations on April 1 are not only a major reshuffle of the industry, but also an important milestone for China’s manufacturing to move towards high-quality development.
Foreign trade companies can only gain a firm foothold in the new development stage by following the trend, decisively seizing the opportunity of price increases, accelerating the pace of transformation and upgrading, getting rid of dependence on policies, and relying on core strengths to gain a foothold in the market.
Behind this adjustment, the country’s deep layout of converting production capacity advantages into people’s livelihood dividends and power for industrial upgrading is worthy of deep thought by all market entities.
How to take advantage of policies to realize the resonance of its own development and the national economic development has become a key proposition for the future development of the foreign trade industry.
