Rebate offers short-term boost

Major Chinese textile companies have said that the recent adjustment in tax rebates will lead to increased profits in the short term, but the long-term impact would be limited.

Jiangsu Sainty Corp Ltd, a major exporter of garments based in Jiangsu province, said in an announcement: "The export tax rebate adjustment will increase the profitability of contracts signed before in the short term," but will have "no major influence" on the company's profits for the whole year.

While the company acknowledged the positive impact the tax rebate would bring, it said the competitive nature of the garments industry and other factors such as a group's ability to bargain and the development of the domestic and international markets, would also affect profits in the sector.