Should The State Cancel The Export Tax Rebate For Textile Products?

Recently, a piece of news was cited by some domestic media and attracted the attention of the industry.

The news said: "to reduce trade frictions with the United States," China agreed to cancel it.

And seven major industries export subsidies.

In the absence of official response, the news has been fermented by the spread of many media, causing great concern to textile export enterprises, and even causing speculation and panic among some enterprises.

"Do you want to cancel textiles?"

"Such enquiries poured in.

The United States trade representative's office said China agreed to cancel its demonstration base and public service platform, which provides export subsidies to Chinese enterprises in seven economic sectors, including textiles, light industry, special chemicals and medical treatment.

, hardware building materials, agriculture, and advanced materials and metals. "

The news also mentioned: "IMF President Lagarde said that the abolition of export subsidies is a positive sign, showing the determination of Chinese policymakers to reform and abide by the rules of international trade."

To this end, reporters to the Ministry of Commerce, China Federation of textile industry to carry out verification and verification.

Immediately after that, the Ministry of Commerce issued a memorandum of understanding on the signing of the memorandum of understanding signed by the Ministry of Commerce and the division of law.

This talk gives an official explanation of the cause and effect of the news, and helps to understand the whole story objectively and realistically.

According to the conversation, we can learn: "in February 11, 2015, the United States filed a consultation request under the WTO dispute settlement mechanism on the basis of our foreign trade pformation and upgrading demonstration base and the foreign trade public service platform.

Since the request of the United States for consultation on the case, China and the United States have maintained close communication and active consultations, eliminating the misunderstanding of the US policy on the pformation and upgrading of our foreign trade base, and reached a constructive memorandum of understanding, confirming that my policy objective is to encourage the pformation of foreign trade to upgrade, rather than to provide financial support for export enterprises, and clarified the support scope of relevant financial policies, and properly resolved the dispute in this case.

"In April 14th, my permanent ambassador to the WTO, Yu Jianhua, and the permanent ambassador to the United States of America, Peng Ke, formally signed the memorandum of understanding to resolve the United States v. my foreign trade pformation and upgrading demonstration base and the foreign trade public service platform (DS489) in Geneva, Switzerland."

The director of the Ministry of Commerce's division of law also pointed out that the demonstration base of foreign trade pformation and upgrading is an industrial gathering area spontaneously formed under the market economy condition, which has effectively promoted the stable, sustained, healthy and balanced development of foreign trade, and is one of the important measures for changing the way of foreign trade development.

In order to further promote the pformation and upgrading of foreign trade, the Ministry of Commerce issued the notice of the Ministry of Commerce on the work concerning the pformation and upgrading of foreign trade in December 12, 2015.

On the basis of the previous demonstration bases of foreign trade pformation and upgrading, the policy promotes the formation of a number of industrial pformation and upgrading bases with obvious industrial advantages, distinctive regional characteristics and perfect public service system, providing strong support for China to move forward from a major foreign trade to a trading power.

An authoritative person from the China Textile Industry Federation said in an interview that China's textile industry has entered the market economy completely, and there is no "subsidized export product price" provided by the government. Some industrial preferential policies are intended to guide the pformation and upgrading of enterprises, and there is no contradiction with the state's export policy.

In view of the misunderstanding caused by misreading and misinformation, Sun Huaibin, Deputy Secretary General of the China Textile Industry Federation and spokesman, said that "export subsidies" should not be confused as "export tax rebates".

The export tax rebate is a common practice in the world. It is in line with the WTO standard. Many countries are implementing it and there is no subsidy problem.

In China, the value added tax is levied on export commodities, and the export tax rebate is adopted by the method of "retreating back", so that the domestic products can enter the international market without tax costs, and compete with foreign products under the same conditions. They can not be regarded as "trade subsidies".

After many understanding, it is confirmed that there is no new adjustment and change in China's current export tax rebate policy.