PRZOOM - /newswire/ -
Delhi, New Delhi, India, 2006/10/25 - As the Government of China announced reduction in tax incentives for many exporters, steel business is set to boom in China..
On September 15 2006, China declared a reduction in tax incentives for several exporters. This announcement came from China shortly after the release of data that showed a record $18.8 Billion trade surplus in the month of August (2006).
This announcement also came, as finance ministers from Canada, Britain, France, Italy, Japan, U.S and Germany were to meet in Singapore prior the gatherings of World Bank and International Monetary Fund. These seven countries, which are the finance leaders in world, will probably renew calls on China to slacken its currency in order to help ease economic imbalances in the world.
After the tax rebates, Chinese products will become more competitive on the world market since the buyers won’t need to pay heavy custom duties on them. After the financial crisis in Asia in late 1990s, China increased its average export rebate from 6 percent to 15 percent. Consequently, there was a sudden jump in the export rate, which doubled to make China the 3rd largest commodity trader globally.
RNCOS has recently published a report “China Steel Industry Analysis (2006)”. As per this report, “Tax incentives comprise various income tax exemptions like loss compensation schemes, regional tax incentive, and cuts for the foreign investors, firms in special economic areas (i.e. SEZ), and firms that produce for export”.
“This tax rebate for exports, actually a government subsidy to the Chinese steel industry, was lowered from 11 percent to 8 percent for steel products”, as per an analyst at RNCOS.
This report helps clients analyze:
- China Steel Export/Import
- China Steel Impact in Global Context
- Opportunities for players in this sector
- Challenges before Chinese Steel Industry
- Key competitors in Chinese steel industry
About the report
This report provides extensive research and objective analysis on the China Steel Industry. It helps clients to analyze the opportunities critical to the success of the steel industry in China. Detailed data and analysis helps potential investors navigate the evolving steel market in China.
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