Starting April 1, 2026, China officially canceled the value-added tax export rebate for photovoltaic products, ending years of preferential treatment for the industry. This policy follows a cut in the rebate rate from 13% to 9% last December and will further raise export costs and squeeze profit margins in the short term.

China’s PV exports account for more than 70% of total output. After the rebate cancellation, export costs for core products such as modules and inverters will rise by roughly 9%–13%. Small and medium-sized manufacturers are expected to face heavy pressure, easing vicious price competition and accelerating capacity elimination. In the long run, the policy will push companies to shift from price competition to technological innovation and high-value product development, supporting high-quality industrial growth.

In the A-share market, PV stocks diverged. Leading firms with cost advantages and technical barriers outperformed, while smaller caps pulled back. Industry concentration is expected to keep rising, with integrated and globally positioned leaders gaining stronger competitiveness. After restructuring, China’s PV industry is set to build a more sustainable global advantage.