China to cut or eliminate export rebates on 2,831 commodities

China to cut or eliminate export rebates on 2,831 commodities Beginning July 1, China will cut or eliminate export tax rebates for 2,831 commodities, Xinhua reported Wednesday.
   China’s Ministry of Finance said Tuesday that the commodities represent more than one-third of all the items regulated by the county’s customs officials.
   “A ministry spokesman said the move was one of a basket of measures to suppress overheated export growth and ease frictions between China and its trade partners,” the report said. “The country will abolish export tax rebates on 553 ‘highly polluting products that consume heavy amounts of energy and resources’ such as salt, cement and liquefied petroleum gas ' Tax rebate on exports of 2,268 commodities which ‘tend to cause trade frictions’ will be reduced,” the spokesman added.
   Among the items to be affected by the export rebates are shelled peanuts, canvas, wood for carving and stamps.
   “The spokesman said the cost of producing the 2,831 commodities would increase as a result of the changes to the export tax rebate regime. This would incite capital investment to move to other ‘high value-added and high tech’ industries. Customs statistics show that from January to May, the country reported a trade surplus of $86 billion, up 83 percent on the corresponding period of last year. Soaring exports have increased liquidity in the domestic market and added to pressures on (Chinese currency), said experts.”