Improving Export Rebates Is Difficult To Reverse Export Decline

The Executive Council of the State Council decided to further improve the export tax rebate rate of 3770 products such as labor-intensive products and electromechanical products starting next month, and cancel the export duties of some steel, chemical products and grain.

Analysts believe that the export tax rebate has been substantially improved for three consecutive years, reflecting the decision makers' concerns about the worsening export situation, which is a great advantage for export processing enterprises. But whether or not we can reverse the decline of export depends on the improvement of the fundamentals of the global economy, and the increase in export orders is the key to the development of export enterprises.

The three time to raise the tax rebate rate is favorable for enterprises to raise the export rebate rate for the third time in the year. Dongguan Dazhong Electronics Co., Ltd. Li Zheng Zhong believes that for the mechanical and electrical production enterprises, it will surely be a great advantage, which will help relieve the pressure faced by the enterprises in the export and contribute greatly to improving the export competitiveness of enterprises.

The export tax rebate rate has increased greatly this time, and we must wait for the good news.

Ho Chi hung, Shijie economic and Trade Office, said that this is indeed a great benefit for many electromechanical products and IT industry in Shijie, and is conducive to easing the increasingly severe living environment of enterprises.

Li Daxiao, director of the British Securities Institute, believes that the three consecutive increase in the export tax rebate rate fully shows that the government attaches importance to the current difficulties faced by export processing enterprises. The scale and scope of the adjustment reflect the decision makers' concerns about the deterioration of the export situation.

"The last export tax rebate rate has been raised to the level before the two large-scale adjustment in 2006 and 2007, which will help alleviate the pressure on the development of related industries at the present time."

Li Daxiao believes that this adjustment is the continuation of various recent favorable policies, and the accumulation of favorable policies has positive driving force on the stock market.

Correspondingly, this has a positive effect on investor mentality.

It is difficult to reverse the export decline. "Now exports do not encounter too high product prices or high export costs, but there is no market at all."

When Hu Baichun, general manager of marketing department of Hongkong Otto Park Investment Limited, learned the news, he was returning from Shenzhen to Dongguan on the highway in Dongguan.

He said that at present, enterprises are in a semi shutdown state, and orders are his biggest worry.

Zhu Weiping, executive vice president of the Institute of industrial economics of Jinan University, believes that the adjustment of export tax rebates for three consecutive times is based on the consideration of economic growth and the employment problem.

"Whether the export tax rebate rate is improved depends on whether enterprises can receive orders."

Zhu Weiping believes that because the financial crisis is global, especially the real economy of China's main export areas is involved, the sharp decline in demand in Europe and the United States is an indisputable fact.

In the short term, the effect of policy will not be too obvious, because orders are indeed shrinking. In the long run, this will help enterprises to reduce export costs and improve their competitiveness in the world.

Wei Tao, Deputy Secretary General of Dongguan Furniture Association, said that as a labor-intensive industry, some furniture export enterprises in Dongguan did encounter great difficulties in export. Raising the export tax rebate rate to a large extent can only be psychological loosening. In fact, due to the lack of orders, some enterprises are now unable to export at all, and the tax rate is further raised, with little influence.