China to Cancel Export Tax Rebates on Aluminum and Copper Products from December 2024

Starting December 1, 2024, China will cancel export tax rebates for certain aluminum and copper products, effectively increasing export costs for these materials. In the short term, this policy change is expected to drive up production costs for aluminum and copper processing companies, potentially leading to export losses and forcing companies to adjust their product mix and pricing strategies.

In the long term, however, the removal of export tax rebates is designed to encourage a shift away from the export of low-end products and to increase the added value of exported goods. This policy aims to foster industrial upgrading, structural adjustment, and enhance China’s competitiveness in the international market. By discouraging the export of lower-value items, Chinese manufacturers are incentivized to focus on producing higher-value goods, which can ultimately benefit the broader industry.

Moreover, this policy is likely to prompt excess production capacity to exit the market, contributing to the optimization of China's aluminum and copper processing industries. The resulting structural changes are expected to improve efficiency and create a more balanced market with a focus on higher-quality production.