Tax Rebate Cuts

The Chinese Government made its boldest move ever to slash tax rebates this year. This move was part of a basket of measures to rein in its overheated export growth and reduce its ballooning trade surplus.

The new tax rebate policy, effective on July 1, affected 2,831 items which account for 37 percent of all exported products. Among those, tax rebates of 553 items falling into the categories of "energy- and resource-consuming or highly polluting" were totally abolished, and tax rebates on exports of 2,268 commodities that "tend to cause trade friction" were reduced.

Since 2004, China has readjusted its tax rebate policy many times and quickened its attempts at bringing its soaring trade surplus under control.