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    Footwear And Other Products Export Tax Rebate Rate Down Shanghai 50% Enterprises Hit

    2007/11/7 0:00:00 10864

    Footwear Export

    Shanghai Bureau of statistics has released a survey of enterprise operating conditions, which shows that the adjustment of export tax rebate policy has the most obvious impact on enterprises in China's macroeconomic regulation and control. More than 50% of enterprises believe that the policy has affected the production and operation of enterprises, and the negative effects should gradually emerge.

    The impact of the export tax rebate policy on Taiwanese businessmen is also quite huge. Dongguan, Shenzhen and Guangzhou have become the worst hit areas.

    Shanghai Jiefang Daily reported that in the three quarter of the special investigation of industrial enterprises' production and operation status and trend judgement released by the Shanghai Statistical Bureau, 52.7% of the surveyed enterprises believed that the adjustment of the export tax rebate policy had an impact on the production and operation of enterprises.

    The change in the policy of raising profits and taxes and electricity prices also has a certain impact on the production of enterprises, with 36.8% and 34.7% respectively.

    Among the surveyed enterprises, there are relatively few enterprises that are affected by the national restrictive industrial policy, the export tax and the export license system.

    China has adjusted the export tax rebate policy since July 1st this year, involving 2831 commodities, accounting for 37% of all customs duties.

    Among them, the export tax rebate rate of 2268 commodities which are easy to cause trade friction has been reduced, covering industries such as clothing, shoes and caps, bags, toys, paper products and so on, and this policy has caused the negative effects of related industries' export recession, and is also gradually emerging in the near future.

    The impact of export tax rebate policy on Taiwanese businessmen is also enormous.

    Cheng Fengyuan, President of the Guangzhou Association of Taiwanese businessmen, pointed out that Guangdong, Dongguan, Shenzhen and Guangzhou were hit by heavy disaster areas. Countless Taiwanese businessmen were involved. After the implementation of the new policy, Taiwan businessmen suffered heavy losses. The cost of their curtain factories increased by more than 10%. With the implementation of the labor contract law and the combination of two taxes, Taiwan businessmen did not know how to operate.

    Zhuang Fuchi, President of Fuzhou Taiwanese businessman, also said that about 30% Taiwanese businessmen were affected in Fuzhou, and there were hundreds of families. At present, there is no way to deal with them. They can only wait for Beijing to listen to the suggestions of Taiwan businessmen, and readjust the export tax rebate policy.

    Cheng Fengyuan also said that Taiwanese businessmen have been looking forward to Beijing's abolition of the export tax rebate list and the abolition of industries other than "two high and one capital". However, the officials concerned only indicated that they would study, and so far there was no specific response.

    In a survey conducted by the Shanghai Statistical Bureau, 403 of the companies surveyed expect annual product exports to increase over last year. 405 are expected to be flat compared with last year, and 166 are expected to decline.

    It is expected that enterprises with reduced exports will mainly include communications equipment, calculators and other electronic equipment manufacturing industries. Besides, textile, clothing, footwear, hat manufacturing and metal products industries also expect exports to decline.

    As for the factors leading to the reduction of the export of enterprises, the respondents believe that the rising cost of raw materials and the increase in export costs, the appreciation of the renminbi and the decline or cancellation of export tax rebates are the three major factors leading to the reduction of exports.

    Of these, nearly 70% companies believe that the reduction of exports is affected by the appreciation of the RMB.

    From the point of view of the industry, the industries that cause export reduction due to the appreciation of the renminbi include furniture manufacturing, chemical fiber manufacturing, leather, feather and down products, textile, clothing, shoes, hat manufacturing, cultural, educational and sporting goods manufacturing.

    The survey conducted by the Shanghai Bureau of statistics involved 33 industrial sectors in Shanghai, and 1351 key industrial enterprises were interviewed.

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