According to a statement posted on China’s Ministry of Finance website on 9 January, the Ministry of Finance and the Taxation Administration have issued an announcement on the adjustment of export rebate policies for solar PV products and other items.
The PV products covered by this adjustment include wafers, cells and modules; and related raw materials including conductive glass, quartz products and fused quartz, among others.
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The adjustments regarding the export rebate policies for PV products and other items are as follows:
Market intelligence provider TrendForce indicates that the cancellation of tax rebates will directly breach the cost threshold for low-margin companies. This will accelerate the exit of inefficient capacity that relies on such subsidies to sustain cutthroat competition, thereby benefiting leading companies capable of commanding premium pricing.
Meanwhile, prior to the policy’s implementation in April 2026, the industry is likely to see an export rush, putting severe strain on maritime shipping. This will force domestic companies to renegotiate prices with overseas clients to pass on costs.
TrendForce further pointed out that in the long run, this marks a transition for China’s new energy industry from “mere product exports” to “localised global production.” It will compel companies to accelerate capacity deployment in Europe, the Middle East and North America to hedge against rising domestic export costs.
This week has seen several new developments for the solar industry in China, including the introduction of stronger policy measures for intellectual property (IP) protection for the country’s solar PV industry and warnings of monopoly risks in the polysilicon sector.
