China has announced a significant shift in its export tax rebate policy, effective April 1, 2026, which will profoundly impact the building materials sector. A key change is the complete cancellation of Value-Added Tax (VAT) export rebates for a wide range of products.
The policy shift affects major product categories, moving the industry from long-standing support into a new, more competitive phase.
This change will force a strategic reassessment for exporters. Profit margins will come under immediate pressure, particularly for small and medium-sized enterprises competing primarily on price. To survive, companies must focus on adding value through design, technical innovation, and brand building to justify potential price increases. Furthermore, businesses should prepare for potential short-term logistics challenges in Q1 2026, as a surge in “rush-to-export” orders ahead of the deadline could strain container availability.
Key Takeaway for Businesses
Act Now: Maximize existing rebates for orders shipped before April 1, 2026.
Re-negotiate: Engage with international clients to discuss new pricing structures.
Adapt Strategically: Invest in product differentiation and cost optimization. Consider exploring domestic market opportunities or strategic overseas production to maintain competitiveness.
The end of the export rebate era is a pivotal moment, pushing the Chinese building materials industry from a model reliant on policy support toward one driven by market innovation and high-quality development.
Post time: Dec-22-2025