BIZCHINA / Impacts
China textiles hit
(Agencies)
Updated: 2007-06-27 10:11
China's decision to cut or do away with export tax rebates for over 2,800
items from July 1 will affect the profit margins of many industries,
including textiles.
Chinese companies are rushing to meet their export commitments. They are
worrying about the future industrial strategy, reports said. "There has
been a lot of talk about tax rebate cuts since June. So, most
manufacturers are operating at full capacity, expecting to export as much
as possible before the deadline," an official from an export firm said.
Shipment schedules are full till July 1, a freight agency in east
China��s Jiangsu province said, adding that freight cost has rocketed
because of increased demand.
The move is an effort to "suppress overheated export growth and ease
frictions between China and its trade partners," the ministry of finance
said.
The last export-tightening move, which imposed extra export tariffs and
cut import duties, led to an export boom, boosting May's trade surplus by
73 per cent to $22.45 billion over the corresponding period in the
previous year.
This time the policy was announced just 10 days before it came into
effect and manufacturers with full order books have little possibility of
increasing production, Chinese media reports said.
(For more biz stories, please visit Industry Updates)
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