Each day TFO Canada publishes a sample of trade news on the Canadian import market along with any new, updated or changed regulations and legislations regarding international trade; countries in which TFO Canada offers services and on the export sectors which it promotes.
China Increases Tax Rebate for Textile ExportsThursday, February 05, 2009 > 14:00:06
(Via I.E. Canada)
China on Wednesday increased export tax rebates for textile and garment makers to 15 percent from 14 percent, its latest measure to support the beleaguered industries.
The move, announced on the government website (www.gov.cn), followed two increases last year of value-added tax (VAT) rebates for textile and garment exports.
Support for these industries is part of the Chinese government's overall campaign to support its economy, which slowed to a seven-year low of 9.0 percent growth last year.
Textile and clothing factories are big employers of semi-skilled labour, casting them in an important role as the government worries that job losses in the economic downturn could fray social stability.
Just two years ago, the government had steadily lowered VAT rebates on textile exports as it sought to propel its then-roaring economy into higher-value manufacturing. But it began to backtrack in August last year, lifting rebates from a low of 11 percent.
Textile exporters have been hit hard by shrinking demand in the and
Europe in the wake of the global financial crisis, as well as the yuan's rise in value over the past year.
The State Council, or cabinet, also called on both textile makers and machinery builders to improve their production quality and employ more people.
About 20 million Chinese rural migrants have lost jobs in factories and cities as the nation's growth has faltered, a top official said earlier this week.