Chinese Government Expected to IncreaseVAT Rebate on Textiles

It is anticipated the Chinese government will soon make an officialannouncement that the export tax rebate on textiles has been increasedfrom the current 11 oercent to 13 percent，while the tax rebate on apparelwill change from 11 percent to 15 percent. This is welcome news to thesector. The increased rebate will boost the profitability of exports，especiallyto Europe where tne yuan appreciation is not a major factor. January through April textile and appare exports to Europe soared 35 percent to 14.115billion U.S. dollars or 26.5 percent of all exports.