As China’s foreign trade surplus continues to grow (now for the 39th
consecutive month) and with its recent ballooning in size, it has been
reported that the Chinese government will likely adjust export VAT
refund rates downwards on a large scale. This means that profits of
exporters in many industries could potentially fall significantly. Further
reductions of refund rates and even the complete elimination of the
export VAT refund may be introduced for products that are pollutioninducing
or high energy-consuming or that use scarce natural
resources.
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