The export tax rebate policy in Chinese fishery sector is under dispute, as it is claimed that it works as a subsidy for foreign consumers rather than domestic producers. This paper investigates the distribution of benefits of this policy in the fishery sector. We find that the effects of the export tax rebate on domestic producers depend on the relative magnitude of the export supply and import demand elasticities. After applying the best-bet parameter values, simulation results indicate that, although the export tax rebate does improve Chinese producers welfare, foreign consumers capture most of the welfare benefits of this policy (60%-75%). Furthermore, the results imply that the welfare gain for Chinese producers is overestimated if the vertical linkage between the retail and the farm markets is ignored. Acknowledgement : We thank Dr. Henry Kinnucan at Auburn University for his helpful insight about the model. This work was supported by Shandong Social Science Research Project of China [grant number 16BCXJ04].