French media: China reduces support for exports of solar panels and batteries, benefiting Europe

According to a reporter from "Les Echos" stationed in Shanghai, starting from April, Chinese solar panel manufacturers will no longer enjoy export tax rebate benefits. By 2027, the battery industry will also eliminate this subsidy.

This news is beneficial for European industries, as Europe has long considered China's unfair competition based on public subsidies. China announced last Friday that it will gradually cancel the previous export tax rebate policy targeting solar panel and battery manufacturers.

This move by Beijing seems to be adjusting its industrial support policies, aiming to reduce unhealthy competition within these two industries, compensate for the declining land revenue, and send a friendly signal to Europe.

These export tax rebate policies (for value-added tax) will cancel the preferential treatment for solar photovoltaic cell manufacturers starting April 1st, as Chinese companies dominate the global market in this area. The tax rebate rate for the battery industry will be reduced from 9% to 6%, and will be completely eliminated by 2027. According to Bloomberg, after this news was announced, the stock price of the global leader CATL fell by 5%, and the stock prices of other manufacturers such as Evergrande Battery and Guoxuan High-Tech also dropped by 4%.

The China Photovoltaic Industry Association (CPIA) stated that this measure helps return to international price levels, reduce the risk of trade wars, and more reasonably allocate fiscal resources.

Solar panels and batteries are not isolated cases. For the first time in ten years, Beijing did not include the highly competitive electric vehicle industry in the 15th Five-Year Plan (2026-2030), which will be passed in March 2025. This omission may indicate that Beijing hopes to let the industry naturally integrate and push small car manufacturers out of the market.

Source: rfi

Original: toutiao.com/article/1854206473374026/

Statement: This article represents the views of the author alone.