The Chinese government said today it will increase export tax rebates from November 1 to support foreign trade as trade war with the United States escalates.
The cabinet said after a regular meeting that the increase in export tax rebates will help cut costs for the real economy and help it deal with the complex international situation and the maintenance of a stable foreign trade.
The statement added that the move was in line with WTO rules. Tax cuts will rise to 16% for exports that currently receive 15% or 13% discount. In addition, the reduction will increase to 10% for exports that receive 9%, and the discount will rise to 6% for exports that receive 5%.
In September, China raised export tax rebates for 397 items including steel products and electronics in an effort to help exporters as the war with the United States worsened.
Chinese policy makers have been stepping up support for the economic slowdown, as the full impact of U.S. tariffs has not been felt so far.
