With 33% export reliance, China polyether polyol industry faces export tax rebate cancellation

At the beginning of 2026, a new policy cancelling the VAT rebate on exports has placed China's polyether polyol industry at the center of significant change. Against the backdrop of high export dependence and continuous capacity expansion, the cost shock from this policy adjustment will intensify market competition, accelerating the industry's entry into a new cycle centered on capacity optimization and industrial upgrading.

At the turn of the year, China's polyether polyol industry has encountered a major policy shift. The Ministry of Finance and the State Taxation Administration announced the cancellation of the value-added tax (VAT) export rebate for products including polyether polyols, effective April 1, 2026. This move will directly undermine