Increased Tax Rebates Spur Exports in Shanghai

China's increased tax rebate rate which went into effect on July 1 has stimulated foreign trade growth in Shanghai by 20 percent for the first seven months this year.

Total foreign trade volume for the period amounted to 39.5 billion U.S. dollars, with imports up 23 percent to reach 16.714 billion U.S. dollars, and exports up 18 percent at 22.792 billion U.S. dollars.

The impetus for the exports recovery has been attributed to the 2.95-percent rise in the average tax rebate rate for export- oriented products by the Ministry of Finance and the State Administration of Taxation.

Shanghai's machinery exports, especially electronic products, recorded the largest increased margin, 50 percent, and that for clothing also achieved a double-digit growth rate.

With the economic recovery in southeast and east Asian countries, Shanghai's exports to the region have also gained some strength, with exports to the Republic of Korea, Thailand, and the Philippines increased by 80 percent, 50 percent and 40 percent, respectively.