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China Adjusts Battery Export Tax Rebate Policy to Guide Industry Toward High-Quality Development

Release time:

2026-01-22

China Adjusts Battery Export Tax Rebate Policy to Guide Industry Toward High-Quality Development

Core Summary
Recently, China's Ministry of Finance officially issued a notice announcing a major adjustment to the export tax rebate policy for battery products. According to the new policy, effective April 1, 2026, the export tax rebate rate for battery products will be reduced from the current 9% to 6%; and will ultimately be completely eliminated from January 1, 2027. This move aims to optimize the foreign trade structure, propelling China's battery industry to transform and upgrade from a scale expansion model based on "winning with low prices" to a "high-quality development" phase that relies on technological innovation and brand value.

Policy Background and Official Interpretation
This adjustment is a continuation of the optimization measures implemented in recent years for the export tax rebates on some products characterized as "Two Highs and One Resource" (high energy consumption, high pollution, resource-intensive). Official interpretations indicate that China's battery industry has now established a globally leading complete supply chain and scale advantage. A timely and orderly reduction and withdrawal of universal financial subsidies will help:

Force Industrial Upgrading: Encourage enterprises to invest more resources in core technology R&D, product quality improvement, and brand building, rather than relying on price competition.
Optimize Resource Allocation: Guide production capacity toward higher value-added products that better align with global green and low-carbon development trends, reducing low-level redundant construction.
Create a Fair Environment: Comply with the development trends of international trade rules, reduce potential trade frictions, and create a more stable external environment for the industry's long-term and healthy development.

Industry Impact Analysis and Response Suggestions
This policy adjustment will have a profound impact on the cost structure and competitive landscape of the global battery supply chain:

Short-term Cost Pressure: The gradual elimination of export tax rebates will directly increase the export cost of Chinese battery products, weakening their price advantage in the international market. Enterprises need to absorb this cost through technological innovation for cost reduction, optimized supply chain management, and enhanced product premium capabilities.
Accelerated Overseas Layout: To maintain competitiveness and get closer to end markets, leading battery companies are expected to further accelerate the pace of building localized production bases overseas (e.g., in Europe, Southeast Asia, North America), in order to circumvent trade policy risks and achieve true global operations.
Increased Industry Polarization: Enterprises with strong technological capabilities, brand influence, and global layout capabilities will successfully navigate the challenges through transformation. In contrast, small and medium-sized enterprises primarily reliant on price advantages will face significant survival pressure, and industry concentration is expected to further increase.

As an active participant in the global battery industry, we believe this policy is an inevitable step to push the industry toward maturity and the pursuit of long-term value. We will take this as an opportunity to unwaveringly increase R&D investment, deepen our global localization strategy, and commit to providing customers with more technologically advanced, more reliable, and more cost-competitive battery solutions over their full lifecycle. Together with our partners, we will embrace a new era of high-quality industrial development.