By He Shan
China.org.cn staff reporter
Liao Xiaoqi, a former minister at the Ministry of Commerce, proposed at the CPPCC that the government cut export duties to zero in order to boost China's troubled export sector.
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Wei Jianguo, the?former Minister of Commerce speaks to reporters, March 7, 2009.?[China.org.cn] |
Worried by slow growth and widespread factory closures, since 2008 China has stepped up aid for manufacturers by raising rebates on export taxes paid on a variety of goods .
"The rebate increases announced last year have begun to take effect," said Liao. "But additional measures should be taken to counter the fall in overseas demand. Many export-driven enterprises are in serious difficulties because overseas consumers have stopped spending."
He said the government should reduce export duties to zero, saying that zero duty is a neutral policy and complies with the rules of the WTO.
According to Liao, many countries have adopted a policy of full tax rebates for exporters, effectively bringing duties down to zero.
Another former official of the Ministry of Commerce echoed Liao's suggestion, saying that he hoped duty-free exports would become the norm.
Wei Jianguo, also a former minister in the Ministry of Commerce revealed that the ministry is drawing up a revised export policy based on a study carried out in Shanghai and Shenzhen.
In January, China's exports fell 17.5 percent from a year earlier, worse than most economists and analysts had projected.
(China.org.cn March 8, 2009)