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China subsidises exporters damaged by US tariffs through tax breaks

Author: Posttime:2018-09-12 08:39:30

CHINA has unveiled measures to support some of the exporters targeted by a looming trade tariff that will affect US$200 billion worth of US imports.

China's Ministry of Finance announced it will increase export rebate rates for 397 goods ranging from lubricants to children's books, which translates into companies shipping these products overseas paying less value-added tax, with effect from September 15, reported Bloomberg News. 
One-sixth of those items were among the products already hit by the tariffs the US imposed earlier on $50 billion worth of Chinese goods, such as pressure-reducing valves or lubricants. Another 67 items receiving a VAT rebate may soon feel the impact of the next wave of US tariffs.
Other products that have been targeted by the higher tariffs may also qualify for tax rebates but aren't included in the above tally compiled by Bloomberg. For example, China said it will lift tax rebates for integrated circuits, and these have been hit by US tariffs, but the item is not included in the above tally due to the differences between the Chinese and US trade code lists.
source:www.schednet.com
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