As the Yuan has strengthened 4% against the US dollar so far this year, tax breaks for tax exporters are suggested to change the sluggish situation of textile industry.

Last year, the government reduced rebates on exports including textile, toys and steel products, making efforts to lower energy consumption and ease trade discord with the America and Europe. However, with the shutting down of many textile companies, the government should consider resuming some tax incentives to help them survive.

Aiming to maintain 15% growth in the total value of exports and imports in 2008, the government should take measures to “stabilize” investor’s expectations for the Yuan’s appreciation.

Popularity: 2% [?]

appreciation, China textile export, Chinese government, tax, tax incentives