China moved on Oct. 21 to shore up its exports by increasing rebates on more than a quarter of taxable goods including textiles and toys, as falling demand threatens the economy. The move came a day after data showed China's economy expanded by 9% in the third quarter, the lowest level in five years as the global credit crisis put a dent in China's booming economy.
The new export rebates, which take effect November 1, apply to 3,486 items of goods, or more than a quarter of all the goods in the customs' tariff list, the ministry of finance said. The agency said the country's exporters, most of them labor-intensive small enterprises, were under substantial pressure as year-on-year exports growth rates were down in eight of the first nine months of 2008. "If we don't take any measures, the exports are likely to further slide, and exporters will face more difficulties, which will have a negative impact on China's overall economic development," the ministry said.
Value-added tax rebates paid by some textile, clothing and toy exporters would be raised to 14% from 13%, the ministry said.
The refunds of export taxes were also raised for exporters of certain plastic products, furniture.
Copyright Agence France-Presse, 2008