Major adjustments to China’s export VAT rebate policy took effect on April 1, 2026. The tax rebates for sanitary ceramics and bathroom fittings have been cancelled, removing the original 9%–13% rebate benefits for export manufacturers. The policy change has directly lifted comprehensive export costs for thousands of sanitary ware enterprises in Chaozhou, Foshan and other ceramic clusters.

For years, many small and medium-sized manufacturers relied on tax rebates to maintain competitive pricing in overseas markets. The elimination of rebates forced companies to abandon low-volume, low-margin orders. Industry insiders point out that price competition is no longer sustainable. Factories are accelerating transformation: upgrading to premium smart toilets, water-saving faucets and integrated bathroom solutions, while shifting sales focus to Southeast Asia, the Middle East and Latin America to diversify market risks.

Meanwhile, stricter global water efficiency standards add pressure on exporters. International buyers now prioritize products meeting high-level water efficiency certifications. Leading domestic bathroom brands plan to increase investment in R&D of water-saving flushing systems and antibacterial glazes. Analysts predict accelerated industry reshuffling; manufacturers lacking independent innovation and certification capabilities will face elimination in the coming 12 months.