China Raises Export Tax Rebate for Textiles to 13% 

China raised export tax rebates for textiles and clothing from 11 percent to 13 percent starting 1 August 2008, meaning the tax rebate ratio has returned to the level in 2006. The government reduced the tax rebate ratio for textiles and clothing to 13% then 11% in 2006 and 2007 respectively. The 2% tax rebate increase will bring about 17.7 billion yuan of income to the industry. 

Chinese export enterprises had been plagued by the stronger Chinese currency which has appreciated 6.5% in the first six months of the year, tight monetary, higher labor costs, rising raw material prices and a global economic downturn. Thus, export enterprises have been calling for a loosening of trade control policies. The tax rebate increase would ease pressure and help boost exports. 

The items covered by the hike include silk, wool yarn, chemical fiber and cotton products. 

The country's textile and clothing exports rose 11.1% to 81.7 billion U.S. dollars in the first half, but the growth rate was 6.4% points less than the same period last year.

Back to Index of August 2008