Chinese Mandarin - Gov't to adjust refund for exports of commodities

BIZCHINA / Previous Adjustments

Gov't to adjust refund for exports of commodities

(People's Daily)
Updated: 2007-04-13 13:41

Wang Xinpei, spokesman for the Ministry of Commerce, says that based on
the current situation of exports and imports in China, China is reviewing
adjustments to the export rebate rate of certain commodities, including
steel.

Wang Xinpei said at the Ministry of Commerce's regular press conference
that to improve the growth mode of foreign trade, the Ministry of
Commerce is now researching the export structure of Chinese goods, the
export rebate rate of certain commodities and ways to expand imports. A
detailed plan will be available soon.

According to China Customs, the trade surplus fell slightly in March.
Wang Xinpei attributed this to the unusually late Spring Festival this
year, and adjustments China made to the export rebate rate on certain
commodities last year.

Data from China Customs also showed that compared with the third and
fourth quarter of 2006, China's trade surplus appeared to be falling
slightly in the first quarter of this year. Wan Xinpei said that
reductions in the export rebate rate help to restrain the expanding trade
surplus.

In the second half of 2006, China adjusted the export rebate rate of
certain commodities. The export rebate rate for142 steel products was
reduced from 11% to 8%. The export rebate rate for textiles, furnishings,
plastics, lights, and one or two wood products was lowered from 13% to
11%.

The data reveals that there was trade deficit in Chinese steel in 2005.
However, in 2006, 43.01 million tons steel was exported; just 18.51
million tons of steel was imported, a 28.3% drop. The steel trade added
US$15 billion to the trade surplus.

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