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China : Govt reduces rebate rate on export duty

2006-8-23

Chinese Government has decided to reduce export duty rebate rate on clothing by 2 percent within one month.

Exports of China exceeded imports and favourable balance amounted to US $14.6 billion which has forced Government to reduce rebate on export duty.

On the other hand, Chinese exporters are disappointed due to this decision as they will lose profitability margin.

Exporters also mentioned that this policy will adversely affect competitiveness of Chinese products and will lose existing customers abroad.


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