China Cuts EV Export Rebate as Exports Surge
The move follows similar cuts for solar products and batteries—the industries at the center of foreign complaints about Chinese overcapacity.
TL;DR
- China will reduce its value-added tax (VAT) rebate for electric vehicle (EV) exports from 13% to 9%.
- The change will take effect on April 1, 2027, and applies to 67 vehicle categories.
- This is the last of China's "new three" export industries (EVs, lithium batteries, solar products) to see reduced export support.
- Foreign investigators have found that China's EV industry benefits from government subsidies and has built excess capacity.
- The announcement follows China brushing off foreign complaints about overcapacity as protectionism.