December last year, China implemented a significant change to its export rebate system. Since 1 Dec 2024, they removed the export tax rebate for aluminum and copper, a significant shift in global trade dynamics.
This means that most aluminum and copper products no longer have a tax rebate when exported out of China.
Aluminum and copper products such as bars, rods, wires, sheets, strips and foils are affected by this change.
“This could be seen as a strategic move from China to demonstrate her role in global economy at how she can influence prices and supply chains. On the other hand, it is also a sign that China is demonstrating a shift in policy from export focused economy to a domestic balanced one”, says COO Raymond Goh.
The good thing is that PCB, although consisting of copper and sometimes aluminum, is not on this list. Hence it is not directly affected by the loss of the export tax rebate. However, indirectly some raw materials for PCB are affected. Manufacturers outside China are expected to have a price increase for the raw material procured from China.
Some raw material suppliers have started to increase prices, citing the change in export policy.
“In a world facing several changing geopolitical situations affecting the supply chain, one must take into consideration multiple factors when deciding about supply bases. It’s no longer just about price and quality; many other factors now play a crucial role in today’s complex world”, says Goh.
If you are looking into your supply chain, maybe this article can be of interest, to make sure your supply chain is compliant and not offering counterfeit products.
