On January 8, the Ministry of Finance and the State Administration of Taxation jointly issued Announcement No. 2 of 2026, implementing significant adjustments to the export rebate policies for photovoltaic and battery products.
This policy will directly impact battery product exporters, requiring them to plan export order timelines in advance and adjust their product structures and market strategies.
On January 8, 2026, the Ministry of Finance and the State Administration of Taxation jointly issued the "Announcement on Adjusting the Export Rebate Policy for Photovoltaic and Other Products" (Ministry of Finance, State Administration of Taxation Announcement No. 2 of 2026), making important adjustments to the export rebate policy for battery products.
According to the announcement, the value-added tax (VAT) export rebate for battery products will be adjusted in phases. Starting April 1, 2026, until December 31, 2026, the VAT export rebate rate for battery products will be reduced from the current 9% to 6%.
More critically, starting January 1, 2027, the VAT export rebate for battery products will be completely eliminated.
This latest policy adjustment represents another significant change in China's export rebate policy for battery products in recent years. Looking back at policy changes over the past two years, a clear adjustment trajectory is evident.
On November 15, 2024, the Ministry of Finance and the State Administration of Taxation had already, through Announcement No. 15 of 2024, reduced the export rebate rate for photovoltaic and battery products from 13% to 9%. This policy took effect on December 1, 2024.
| Time Node | Battery Export Rebate Rate | Policy Basis | Effective Date |
|---|---|---|---|
| Before Dec 1, 2024 | 13% | Previous Policy | Long-term |
| From Dec 1, 2024 | 9% | Announcement No. 15 of 2024 | December 1, 2024 |
| From April 1, 2026 | 6% | Announcement No. 2 of 2026 | April 1, 2026 |
| From Jan 1, 2027 | Eliminated | Announcement No. 2 of 2026 | January 1, 2027 |
This series of policy adjustments demonstrates a gradual and sequential characteristic, providing an adaptation period for enterprises while clearly conveying the policy direction.
Li Xianzhong, Director-General of the Comprehensive Department of the Ministry of Finance, explicitly explained the background and objectives of this policy adjustment at the State Council Information Office press conference on January 20. He stated that this adjustment to the export rebate policy will help promote the efficient use of resources, reduce environmental pollution and carbon emissions, and drive the comprehensive green transformation of the economy and society.
Another important objective of the policy adjustment is to guide the rational adjustment of the industrial structure and promote industrial transformation and upgrading. By gradually eliminating export rebates, it aims to comprehensively address "involution-style" competition within the industry and promote high-quality economic development.
In recent years, China's battery industry has demonstrated strong competitiveness in the international market but has also faced issues such as overcapacity and low-price competition. This policy adjustment is seen as an important measure to guide the industry toward a higher-quality development path.
For battery export enterprises, this series of policy adjustments means that export costs will gradually increase. Enterprises need to reassess the profitability of their export business and adjust their market strategies.
Wang Li, an expert from the China New Energy Battery Industry Association, analyzed: "In the short term, some enterprises, especially small and medium-sized enterprises that rely on price advantages to participate in international competition, may face pressure from compressed profit margins."
In the long run, the policy adjustment will promote industry consolidation and technological upgrading. Enterprises with technological advantages, brand influence, and cost control capabilities will gain greater development space, while those relying solely on price competition will face greater challenges.
The policy adjustment may also encourage enterprises to strengthen technological innovation, increase product added value, and actively explore the domestic market to reduce excessive reliance on exports. Simultaneously, some enterprises might consider establishing production bases overseas to mitigate the impact of changes in export rebate policies.
In the face of the upcoming adjustments to the export rebate policy, battery export enterprises need to adopt a series of countermeasures.
Reassess export strategies. Enterprises should arrange export orders reasonably according to the policy adjustment schedule, optimize export timing, and minimize the impact of policy changes as much as possible.
Strengthen cost control and product innovation. Offset the cost pressure from reduced rebates by improving production efficiency and product added value. Simultaneously, enhance R&D and transition to high-end products to improve market competitiveness.
Diversify market layout. Actively explore markets in countries along the "Belt and Road" initiative and other emerging markets, while strengthening domestic market development to reduce dependence on traditional export markets.
Pay attention to policy details and implementation interpretations. Enterprises should closely monitor relevant departments' specific interpretations and implementation details of the policy to ensure maximum protection of their interests under compliant premises. The policy clearly states that the applicable rebate rate is determined by the export date stated on the export customs declaration form.
An industry analyst noted that as support policies for the new energy industry gradually tighten worldwide, Chinese battery enterprises must shift from "policy-driven" to "innovation-driven."
In the international market, the EU and the US are increasing support for their domestic battery industries. China's adjustment of its export rebate policy may indicate that global battery industry competition is shifting from simple cost competition to comprehensive competition in technology, brands, and supply chains.
China's battery industry, having rapidly risen relying on policy advantages and cost advantages, now stands at a new turning point, shifting toward a more sustainable development track guided by policy.