Export tax rebate has once played an important role in promoting the export growth in China, however, as China's economy changes and evolves, the policy encouraging export, which is primarily represented by the export tax rebate, too, has started to show changes. Anbound’s scholars point out that the export tax rebate policy has distorted the signs of external demand by giving false impression of strong external demand and covered up the signal of shrinking international market and slowed down the industry adjustment in the country. The historical mission of large scale export tax rebate policy is now over and China needs to implement new policy to remedy the distortion brought by its earlier policy.