Starting from April 1st, the export tax rebates for Chinese glass products have been completely abolished. This covers all glass and products under Chapter 70 of the customs tariff, including daily-use glass, construction glass, glass packaging, glass fibers, etc. The original tax rebate rate of 9% – 13% has been directly set to zero. There is no transitional period and no exception list. This is another traditional large-scale export industry that has experienced a “reduction in subsidies” after solar energy and ceramics. It will have a severe short-term impact and reshape the long-term landscape.
Drawbacks:
Rising Export Costs Press on Corporate Profits
Glass exporters, long reliant on price advantages, have been directly hit. Industry estimates show that the zeroing of export tax rebates equates to a direct increase in export costs by 9%–13%. Most small and medium-sized glass manufacturers, whose export profit margins originally hovered between 5% and 8%, now face widespread losses or even unprofitable operations following the policy implementation.
Companies in major glass-producing regions such as Zhejiang, Shandong, and Guangdong report that new order quotations have had to be raised by 8%–12%, leading to reduced acceptance from overseas customers. Some long-term clients are clearly cutting prices, reducing volumes, or shifting orders. As a result, newly secured export orders have declined by 20%–30% year-on-year. This is the situation for glass lid factory now.
Benefits:
1. Small and Medium Enterprises Under Pressure; Industry Polarization Intensifies
Industry insiders note that large enterprises, benefiting from scale, technology, and stronger bargaining power, can still absorb part of the increased costs through internal efficiency improvements, product price hikes, and market diversification. However, small and medium-sized glass companies—accounting for 70% of total exports—are widely facing challenges including order loss, tight cash flow, and production halts or reductions. Some have already been forced to cut capacity or suspend export operations.
2. This Crisis Drives Industry Transformation, Benefiting Long-Term High-Quality Development
Despite short-term pain, industry experts generally agree that eliminating tax rebates will accelerate the elimination of outdated capacity and curb low-price competition, pushing companies to shift focus from “price wars” to “technology, quality, and branding.” Going forward, firms with high-end products, independent R&D capabilities, environmental compliance, and established overseas channels are expected to gain greater growth opportunities, potentially increasing overall industry concentration.
Currently, industry associations are actively researching corporate difficulties and calling for phased support measures—including financial assistance, funding support, and export credit insurance—to help companies transition smoothly and collectively advance China’s glass industry from a “major exporter” to a “manufacturing powerhouse.”
3. Underlying Logic for this policy: It’s Not About Suppressing Exports, But “Forcing the Good to Become Better”
The official policy direction is very clear: subsidies will no longer be provided for low-value-added, high-energy-consuming, and high-emission low-cost exports. The objectives are:
- Alleviate overcapacity and reduce cutthroat competition in low-end markets;
- Drive product upgrading and transition toward high-end glass, energy-saving glass, and specialty glass;
- Comply with global trade rules and minimize disputes over “subsidized exports.”
Post time: May-25-2026
