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. |