China Cancels Export Tax Rebate for Primary Polysiloxane, Acc
Keywords: Export tax rebate, primary polysiloxane, industrial upgrading, deep-processed products, Hongye Silicone
Core Sentence: China officially canceled the 13% export tax rebate for primary polysiloxane products (including DMC, 107 rubber, and raw silicone rubber) on April 1, 2026, a policy aimed at encouraging high-value-added deep-processed product exports and optimizing the industrial structure.
Details:
The cancellation of the export tax rebate for primary polysiloxane is a significant policy adjustment by the Chinese government to promote the high-quality development of the silicone industry. Previously, primary polysiloxane products enjoyed a 13% export tax rebate, which incentivized the export of low-value, low-profit raw materials. However, this model has led to excessive reliance on low-end exports, limited investment in R&D and high-end product development, and frequent trade disputes. The new policy eliminates the tax rebate for primary products, effectively increasing their export costs by 13% and reducing their price competitiveness in the international market. At the same time, the export tax rebate for deep-processed silicone products such as mold silicone, liquid silicone rubber, and silicone adhesive remains at 13%, encouraging enterprises to shift from exporting raw materials to finished products. This policy will accelerate the reshuffling of the silicone industry, forcing small and medium-sized enterprises with low added value and weak R&D capabilities to transform or exit the market, while benefiting leading enterprises with strong technical strength and high-end product 布局. Hongye Silicone actively responded to the policy adjustment as early as Q1 2026. The company reduced the export volume of primary materials such as DMC and 107 rubber by 40% year-on-year, while increasing the export ratio of deep-processed products such as mold silicone, electronic potting glue, and food-grade silicone to 85% of total export volume. This strategic adjustment not only complies with national policy guidance but also enhances the profitability and international competitiveness of the company’s export business.
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