On December 12, 2025, China’s Ministry of Commerce (MOFCOM) and the General Administration of Customs (GACC) jointly issued Announcement No. 79, announcing an adjustment to the Catalogue of Goods Subject to Export License Administration (2025). Under this revision, stainless steel products have been brought back under export license administration.

For importers and distributors, this naturally raises questions.

What Export Licensing Does and Doesn’t Change?

Will this affect delivery timelines?

Does it signal a tighter supply?

And most importantly, does it change product quality?

As with most policy-related topics, the reality is more operational than political. Export licensing does not redefine what stainless steel is. What it changes is how quality is verified before the material leaves the country.

This distinction matters.

In this article, you will know the development of the export license, why China adopts it, how the export license policy affects the supply chain, how it will affect your purchase of stainless steel from Chinese suppliers, and the effect of the policy in the short and long run. 

Policy Evolution

2007–2008: Introduction of Export Licensing

On May 20, 2007, MOFCOM and GACC issued Announcement No. 41, placing 83 steel-related customs tariff codes under export license control. The scope covered major steel products, including hot-rolled coils, cold-rolled coils, wire rod, and stainless steel.

The policy was introduced at a time of rapid growth in China’s steel exports, with the primary objectives of restraining excessive export expansion, safeguarding domestic supply, and easing rising trade frictions. Export licenses were administered on a “one license, one batch” basis, with a validity period of three months, and applied exclusively to general trade exports.

2009: Policy Rollback amid Global Financial Crisis

According to Announcement No. 100 (2008) issued by MOFCOM and GACC, export license requirements for several categories of goods — including certain steel products (stainless steel included) — were officially abolished as of January 1, 2009.

This shift occurred against the backdrop of the global financial crisis, which led to a sharp contraction in external demand. Policy priorities at the time moved toward stabilizing growth and supporting exports, prompting the removal of licensing restrictions on steel products.

What Products Are Included in the Exporting License Policy 2026?

According to the annex of the official announcement, a total of 268 customs tariff codes have been brought under export license administration. These products cover the entire steel value chain, from raw materials to finished products. The scope includes all stainless steel products, though it does not encompass all categories of steel products.

How will the policy be enforced?

One License, One Batch

Definition: Each export license may be used for only one customs declaration and clearance.

Application: Commonly applied in export license administration, such as for dual-use items and technologies.

Key Feature: The license is fully consumed upon a single customs clearance and cannot be reused.

Multiple Uses per License

Definition: A single license may be used for multiple customs declarations within its validity period, subject to a usage limit (for example, up to 12 times).

Application: Commonly applied to the import of dual-use items and technologies.

Key Feature: Offers greater flexibility and is suitable for businesses handling imports in multiple batches or smaller volumes.

Why Is Beijing Bringing Back Export Licenses?

Easy. Stagnish demand and oversupply.

Against a backdrop of global economic deceleration, the stainless steel industry is facing mounting pressure. The prolonged downturn in China’s real estate sector, persistent geopolitical uncertainty, and the increasing use of trade barriers have collectively weakened global demand for stainless steel. As a result, competition across the value chain has intensified.

China’s stainless steel sector, characterized by structurally high production capacity, has struggled to rebalance supply. Output reductions have been limited, leading to continued oversupply and sustained price competition in both domestic and overseas markets.

From a volume perspective, China’s stainless steel exports have remained resilient. In 2024, total exports reached approximately 5.044 million tonnes, an increase of 1.027 million tonnes year-on-year, representing growth of 25.6%. Between January and October 2025, exports totaled around 4.1409 million tonnes, marginally higher by 0.016 million tonnes, or 0.04%, compared with the same period a year earlier.

However, export value tells a different story. In 2024, China’s stainless steel exports were valued at approximately RMB 67.52 billion, down RMB 9.18 billion year-on-year, a decline of 12%. From January to October 2025, export value stood at about RMB 55.43 billion, a further 0.68% decrease compared with the same period last year.

This divergence between export volume growth and declining export value highlights a critical imbalance: China is exporting more stainless steel, but at increasingly compressed prices. The trend reflects intensified price competition, diminishing margins, and growing pressure on both domestic producers and international markets.

What an Export License Actually Does — and What It Doesn’t

At its core, an export license is not a quota and not a ban. It is an approval process that requires exporters to submit product and transaction information before shipment.

It does not:

• Change international standards (ASTM, EN, JIS still apply)
• Alter grade definitions or chemical compositions
• Automatically reduce export volumes

What it does introduce is a formal checkpoint between production and shipment. And that checkpoint is where quality and standards become more transparent.

Quality as a Gate, Not a Promise

In a traditional export environment, quality is often defined contractually but verified after shipment—sometimes only when a dispute arises.

Licensing shifts this sequence.

Before an export approval is granted, materials must be clearly defined:

• Grade and specification
• Applicable standards
• Production batch and heat number
• Supporting documentation such as Mill Test Certificates

This turns quality from a post-shipment discussion into a pre-shipment condition. Material that cannot be clearly identified, documented, or traced simply becomes harder to move across borders.

From a buyer’s perspective, this doesn’t raise standards—it enforces the standards that already exist.

Documentation Forces Consistency

Export licensing relies heavily on documentation. That requirement has a practical side effect: it forces exporters to align their internal processes.

To issue consistent and credible documents, producers and processors must:

• Standardize inspection procedures
• Maintain stable production parameters
• Reduce reliance on mixed or downgraded stock

In other words, paperwork becomes a mirror of process discipline.

Inconsistent production is difficult to hide when every shipment must be clearly explained on paper.

Traceability Changes Export Behavior

Another key element is traceability.

When product batches are linked to specific producers, exporters, and transactions, responsibility becomes clearer. If quality issues arise, the origin can be identified more easily.

This discourages practices that buyers often worry about:

• Grade substitution
• Unclear material origin
• Re-labeling or re-rolling of off-spec stock

Over time, this naturally filters the market. Exporters who rely on opportunistic trading find it harder to operate, while those with stable supply chains and quality control gain an advantage.

Standardized Products Move More Smoothly

In practice, licensing systems tend to favor clearly standardized products.

Grades with well-defined international specifications, stable production routes, and established applications are easier to document and approve. Vague or loosely specified material is not.

This subtly encourages a shift away from low-transparency exports toward:

• Standard grades
• Defined surface finishes
• Clear end-use descriptions

For overseas buyers, this often translates into fewer “too-good-to-be-true” offers—and fewer surprises after arrival.

What About Timing?

It’s fair to ask whether licensing affects delivery schedules.

So far as we know, as an exporter, we will have to add one more step before we declare at the customs: submitting the corresponding contract and quality certificate and waiting for the export license. 

There isn’t a complete procedure or instructions announced, and even from the governmental level, the relevant departments also need time to adjust and adapt. 

In the short term, it can require more advance planning. Exporters need to prepare documents earlier, and shipments benefit from clearer production and booking schedules.

However, once processes stabilize, licensing tends to reduce last-minute changes and shipment uncertainty. The trade-off is less spontaneity, but more predictability.

For buyers managing inventory, projects, or downstream customers, predictability often matters more.

An Exporter’s View from the Ground

As exporters, what we observe is not a shift in quality expectations, but a shift in how quality is demonstrated.

Conversations with buyers increasingly focus on:

• Documentation completeness
• Batch clarity
• Lead-time planning

These are not new requirements. They are simply becoming more visible.

A Signal, Not a Statement

For international stainless steel buyers, export licensing—particularly in China—should be read less as a policy signal and more as an operational one.

It doesn’t redefine quality.

It doesn’t replace standards.

It doesn’t eliminate risk.

What it does is make quality harder to shortcut and easier to verify.

And in a global market where trust is built on consistency, that distinction is worth understanding.

From a more practical view, some small Chinese traders and sellers may now be rushing to export their goods quickly before January, which might overdraw the demand in the near future. In the long run, some hold a rather pessimistic view that stainless steel products made in China will lose their advantage, which is low price, and become less competitive in the global game. For that, it might be true to some outdated and unqualified enterprises, typically those that rely on scams, and low-quality or unqualified secondary products. The policy, hopefully, seeks to limit exports of low-value-added products, promote higher-technology exports, and compel companies to improve energy efficiency and reduce emissions. More broadly, the policy aims to bring greater discipline to stainless steel exports, curb low-price and disorderly competition, help restore exporter margins, and reduce the risk of trade friction with overseas markets.