China will cut the tax rebate it pays exporters of electric cars, the regime’s Ministry of Finance and State Taxation Administration said on Oct. 12—three days after its Commerce Ministry brushed off foreign complaints about Chinese overcapacity as protectionism.
Starting April 1, 2027, the value-added tax (VAT) rebate on exported new energy vehicles, which include battery electric and plug-in hybrid cars, will drop from 13 percent to 9 percent, covering 67 vehicle categories, from sedans and SUVs to commercial vehicles.
Electric cars are the last of China’s “new three” export industries—EVs, lithium batteries and solar products—to have their export support cut. European investigators found that China’s EV industry benefited from government subsidies and built far more capacity than its home market could absorb. Washington has opened trade probes into the same problem….
China Cuts EV Export Rebate as Exports Surge
