China's Ministry of Finance said Tuesday the country would adjust the export
rebate policy on 2,831 commodities, which account for 37 percent of the total
items listed on the customs tax regulations starting from July 1.
A ministry spokesman said the move was one of a basket of measures to
suppress overheated export growth and ease frictions between China and its trade
The country will abolish export tax rebates on 553 "highly polluting products
that consume heavy amounts of energy and resources" such as salt, cement, and
liquefied petroleum gas, said the spokesman.
Tax rebate on exports of 2,268 commodities which "tend to cause trade
frictions" will be reduced, he said.
The country will scrap the export tax for ten commodities including shelled
peanuts, canvas, wood for carving and stamps, according to the spokesman.
The new tax rebate system will have five levels, namely 17 percent, 13
percent, 11 percent, 9 percent and 5 percent.
The spokesman said the cost of producing the 2,831 commodities would increase
as a result of the changes to the export tax rebate regime. This would incite
capital investment to move to other "high value-added and high tech" industries.
In the long run, this would help the country develop in an economic and
sustainable way, he said.
Customs statistics show that from January to May, the country reported a
trade surplus of 86 billion US dollars, up 83 percent on the corresponding
period of last year.
Soaring exports have increased liquidity in the domestic market and added to
pressures on the RMB, said experts.