China’s foreign trade policy adjustments will help pave the way for a manufacturing powerhouse.

Recently, the release of a major policy has attracted widespread attention. The Ministry of Finance and the State Taxation Administration announced that, starting April 1, 2026, export tax rebates for photovoltaic products will be cancelled, and the tax rebate rate for battery products will be gradually reduced until it is eventually cancelled. This move is not only a continuation of the tax rebate rate reduction in 2024, but also a significant turning point in China’s foreign trade policy, marking the beginning of a “shift in gears” in China’s foreign trade development. The photovoltaic industry has been caught in a vicious cycle of “increased volume but decreased price.” China’s photovoltaic production capacity accounts for more than 80% of the global total, yet it has frequently faced anti-dumping investigations. Export tax rebates were originally intended as a fiscal subsidy to offset costs, but ultimately these subsidies were all transferred to overseas buyers, resulting in meager profits for enterprises. This policy adjustment is a precise response to this situation. The policy adjustment has several significant implications. First, it aims to break the “externalization” dilemma and promote a return to rational prices in overseas markets. Previously, due to factors such as export tax rebates, the prices of Chinese photovoltaic products in overseas markets were excessively low, leading to vicious competition. Eliminating tax rebates will encourage reasonable price adjustments. Second, it reduces trade friction and closes the door to Western “anti-subsidy” measures. For a long time, some Western countries have conducted anti-dumping investigations against Chinese photovoltaic products under the pretext of “subsidies.” This policy adjustment can effectively alleviate this problem. Finally, it forces industry upgrading, allowing technologically advanced companies to stand out. Under policy pressure, companies that rely on low-price competition and lack technological innovation will face elimination, while companies with genuine core competitiveness will gain greater development opportunities. Some people worry that rising prices for Chinese-made products will lead to lost orders, but this concern is unnecessary. China controls over 90% of the world’s silicon wafer and solar cell production capacity, and overseas demand for these products is inelastic and cannot be replaced in the short term. Therefore, the price increase will ultimately be borne by the global market. Leading companies that have already established overseas production capacity can take this opportunity to expand their market share and promote a healthier industry structure. In the past, China’s foreign trade relied on low-price expansion to seize market share; in the future, it will rely on technology and brand to win premiums, shifting from ‘subsidizing overseas’ to ‘retaining wealth domestically.’ Made in China is gradually shedding its cheap label and demonstrating strong international competitiveness. This policy adjustment has received widespread support from netizens, who expressed, “It should have been done long ago!” and “Support making Chinese products at good prices!” Looking to the future, “Made in China” is expected to shift from a “price war” to a “value war.” By leveraging technological premiums to support corporate profits, it will inject strong momentum into the high-quality development of the Chinese economy. In the near future, those companies that rely on low prices and lack technology will be eliminated, while truly competitive “Made in China” products will earn respect within reasonable price ranges and shine even brighter in the international market.