China may hike textiles export tax rebates by 3%

13 June 2008 05:08  [Source: ICIS news]

SINGAPORE (ICIS news)--China may raise its export tax rebates on textiles and garments from the current 11% to 14% to revive orders for outgoing cargoes, said producers and traders on Friday.

This move was welcomed by China’s polyester fibre and yarn industry whose products are utilised as raw material by Chinese textile and garment manufacturers.

"It’s a lot of talk now but if it’s true, then China’s textiles industry should be able to make a gradual price recovery," said a Chinese trader of polyester yarns in Mandarin.

A combination of the yuan’s appreciation, rampant inflation in China and falling overseas orders have taken their toll on the margins of Chinese makers of textiles and garments.

Chinese officials did not comment when contacted by ICIS news.

China had cut the export tax rebate for textiles and garments by two percentage points to 11% on 1 July 2007.

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By: Hong Chou Hui
+65 6780 4359

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