As the world financial crisis has taken hold, China’s Central Government moved to increase the value-added tax (VAT) refund rates on several industries in an effort to boost production. For example, China has increas...As the world financial crisis has taken hold, China’s Central Government moved to increase the value-added tax (VAT) refund rates on several industries in an effort to boost production. For example, China has increased the tax rebate on textiles at least four times over the past six months,展开更多
COVER STORY China, long hailed as the cheap manufacturing capital of the world, is putting financial pressure on parts of this very industry. Tax rebates favorable to textile, iron and steel industries, for example, a...COVER STORY China, long hailed as the cheap manufacturing capital of the world, is putting financial pressure on parts of this very industry. Tax rebates favorable to textile, iron and steel industries, for example, are being cast aside and picked up by hi-tech and medical industries. While this may be a partial remedy to alleviate China’s colossal trade surplus-which irritates international neighbors-and clean up the environment, many small manufacturers are feeling the heat. Industries with high added-value are clearly winners of the new trade policies, and agriculture is too, as the government continues its efforts to boost the rural economy. But in the long run, if textile and other low-tech manufacturing can use the current rebate policy as a stimulus to add more value to their products, even they might look back and see the new trade era as more win-win than they originally thought.展开更多
文摘As the world financial crisis has taken hold, China’s Central Government moved to increase the value-added tax (VAT) refund rates on several industries in an effort to boost production. For example, China has increased the tax rebate on textiles at least four times over the past six months,
文摘COVER STORY China, long hailed as the cheap manufacturing capital of the world, is putting financial pressure on parts of this very industry. Tax rebates favorable to textile, iron and steel industries, for example, are being cast aside and picked up by hi-tech and medical industries. While this may be a partial remedy to alleviate China’s colossal trade surplus-which irritates international neighbors-and clean up the environment, many small manufacturers are feeling the heat. Industries with high added-value are clearly winners of the new trade policies, and agriculture is too, as the government continues its efforts to boost the rural economy. But in the long run, if textile and other low-tech manufacturing can use the current rebate policy as a stimulus to add more value to their products, even they might look back and see the new trade era as more win-win than they originally thought.
