Starting April 1, 2026, China will implement a significant change in its export tax policy, eliminating export VAT refunds (export VAT rebates) for 249 product categories. This measure affects a wide range of industrial and construction materials, including natural stone products such as marble, granite, and other processed stones.
This change is part of a broader adjustment of China’s export incentives and is expected to impact both international markets for construction materials and the overall dynamics of the natural stone sector.
What Changes in Practice
Until now, many Chinese exporters benefited from partial or full VAT refunds on products destined for export. This system acted as an indirect incentive, enabling competitive pricing in international markets.
Under the new regulation, VAT refunds will be eliminated for specific HS codes, including processed natural stone products such as cut or polished marble, limestone, and granite. As a result, the tax cost will now remain embedded in the final export price.
Implications for the Natural Stone Sector
For natural stone exporters, this change may lead to higher export costs for Chinese products. The actual impact will vary depending on the level of processing, cost structures, and trade agreements, but the removal of VAT refunds reduces the ability to absorb tax costs.
Market effects may include:
-
Price adjustments of Chinese natural stone products,
-
Reduced profit margins for exporters maintaining competitive prices,
-
Restructuring of export strategies, with greater emphasis on higher value-added products.
Implications for the International Industry
Internationally, this policy may influence the competitive balance in the natural stone sector. Producers from other countries, previously pressured by Chinese pricing, may experience improved competitive conditions, particularly in markets where cost is a key factor.
At the same time, the change is expected to increase the importance of:
-
Quality, certification, and traceability,
-
Differentiation through design, finishing, and specialization,
-
Sustainability and environmental compliance, which are increasingly critical in global supply chains.
Broader Strategic Shift
The elimination of export VAT refunds is not limited to natural stone; it reflects a broader strategic shift by China. Authorities aim to reduce overproduction, ease international trade tensions, and encourage more sustainable business models less reliant on government tax incentives.
Summary
The elimination of export VAT rebates does not automatically advantage foreign exporters to China, but gradually changes the structure and incentives of the Chinese market, creating opportunities mainly for differentiated, high-value products.
In the natural stone sector, this means that importers and exporters focusing on consistent quality, finishing, batch selection, and support services will be better positioned to capitalize on the new conditions.
