China to Cancel Export Tax Incentives for Photovoltaic Products
Starting from Wednesday, China will fully eliminate export tax incentives for photovoltaic products, a move expected to reduce the risk of trade disputes with other countries.
In January this year, the Ministry of Finance and the State Taxation Administration issued an announcement specifying that starting April 1, 2026, value-added tax (VAT) export rebates for photovoltaic products and other goods will be abolished.
The China Photovoltaic Industry Association stated that this measure will help drive foreign market prices back to rational levels, curb excessive declines in export prices, and lower the risk of trade friction and disputes facing China.
The association pointed out that since 2024, Chinese photovoltaic products have faced increasingly fierce cutthroat competition in overseas markets, with export prices continuously declining, resulting in a "volume increase, price decrease" trend.
Reports indicate that some companies have used export tax incentives as leverage to pressure foreign buyers. This practice effectively turns export tax rebate policies into subsidies for exports to overseas markets, not only causing losses to Chinese enterprises but also significantly increasing the risk of international trade disputes, including anti-subsidy and anti-dumping measures targeted at China’s photovoltaic industry.
The association emphasized that this situation has negatively affected the interests and international image of China’s photovoltaic industry.
Industry experts believe that eliminating tax incentives essentially uses fiscal policy to "force" the sector to shift from a "low-price, high-volume" model to one based on high-quality competition. This will accelerate the elimination of inefficient, outdated-technology, and subsidy-dependent enterprises, creating space for truly technologically advanced, high-quality firms to thrive.
Meanwhile, the industry will inevitably face numerous challenges in the short term, including shrinking profits; some financially weak enterprises overly reliant on government support may struggle and eventually exit the market.
Original source: toutiao.com/article/1861239560448003/
Disclaimer: The views expressed in this article are those of the author(s) and do not necessarily reflect the position of the publisher.