Written by: Islam El-Saqqa
China's exports of solar energy equipment continued to record a noticeable decline during the current year, affected by changes in tax policies and the authorities' trends toward imposing potential restrictions on the export of vital technologies.
Data showed a 6.4 percent decrease in Chinese shipments of solar cells and panels during September compared to the same period last year. Despite a slight increase compared to August, the annual decline contributed to a 9.5 percent drop in total overseas shipments since the beginning of the year.
Repercussions of Canceling Tax Incentives
China's exports of solar cells and panels began to decline since May, following Beijing's cancellation of export tax incentives on photovoltaic products starting April 1st. The Chinese authorities also intend to withdraw tax incentives for battery products at the beginning of 2027.
This tax policy adjustment has led to higher export costs and increased international prices for Chinese solar products, slowing down the volume of overseas shipments and affecting their competitiveness in global markets.
Trends Toward Restricting Advanced Technologies
In a related context, the Chinese government is proposing a new trade policy that may limit the export of certain advanced solar technologies, including technologies for manufacturing high-efficiency products such as perovskite, tandem cells, and polysilicon.
These proposed changes come within broader efforts aimed at protecting national security, core technologies, and maintaining international trade rules, as official authorities concerned launched a public consultation period on the proposed amendments to the list of technologies subject to export restrictions and bans.
