China announced Monday it was abolishing export duties on a number of cereals and industrial products while cutting the tax on chemical fertilisers to boost exports and combat the financial crisis.
The new measures, affecting corn, rice and soya, as well as wire wool, come into effect on July 1, the finance ministry said in an official statement published on its website.
Since August, China has increased export tax rebates seven times, allowing exporters to recover part or all or part of the tax on the added-value, which can be as high as 17 per cent in China.
The export sector, which has been a driver of Chinese growth over the last 30 years, has been hit hard by the global economic crisis, with company closures and rising unemployment a huge problem, particularly in the south. Over the first five months of the year, exports dropped by 21.8 per cent on a year earlier, totalling 426.14 billion dollars.
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