Starting April 1, 2026, China will fully remove export tax rebates for products classified under HS 391000, covering primary-form organosilicon and polysiloxane materials. This policy marks a significant shift in China’s approach to silicone exports, moving toward a market-driven and value-oriented pricing framework.

HS 391000 includes a range of basic silicone materials such as silicone oils, silicone gums, and other primary polysiloxanes. These materials have long served as essential upstream inputs for the global silicone industry.

With the elimination of export tax rebates, export pricing will increasingly reflect actual production and operational costs rather than policy-based incentives. As a result, exporters will need to reassess their pricing strategies, cost efficiency, and product positioning, particularly those operating in low-margin, volume-focused segments.

From a broader perspective, this policy aligns with China’s long-term industrial strategy: reducing reliance on subsidy-supported exports while encouraging innovation, quality improvement, and higher value creation.
Going forward, products with stronger technical performance, consistency, and application-specific advantages are expected to remain more competitive in global markets.