China Cuts Export Incentives for 249 Products Starting April

China has announced a major policy shift to reduce export subsidies amid growing international criticism of its trade practices. The Ministry of Finance confirmed on January 9 that value-added tax rebates will be removed or reduced for numerous products beginning April 1, 2026.

The government will eliminate rebates entirely for 249 items, including solar cells, ceramic tiles, and lithium hexafluorophosphate used in battery production.

Additionally, rebates for 22 battery-related products will drop from 9% to 6%, with complete removal planned by January 2027.

Key Highlights:

  • Solar cells and lithium battery components specifically targeted for subsidy cuts
  • Battery product rebates are dropping from 9% to 6% before complete removal in 2027
  • The policy aims to reduce international trade tensions with Europe and Latin America

Sources: 

https://www.bloomberg.com/news/articles/2026-01-09/china-to-cut-export-tax-rebates-to-ease-global-trade-tensions

https://www.gurufocus.com/news/4104380/china-cuts-export-tax-rebates-on-249-products-starting-april-1

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