- Summary: China's announcement late last week to implement a revised export tax rebate policy in an attempt to better balance its increasingly controversial trade surplus has actually been a boon for most stocks affected by the policy, regardless if negatively or positively. The new policy partially cuts VAT rebates for select low-end, low value-added export products while in some cases giving full 17% rebates to higher-end (value-added) products such as in tech and equipment. A Goldman Sachs economist reports, "The increase in the export-tax rebate rates in high-tech products and technical equipment may incidentally boost rather than slow down China's export growth." Even stocks of firms involved in low-end, low value-added products are rising because the amount of rebate lost is rather insignificant to overall net income.
- Related links: China's Latest Attempt to Cut Its Trade Surplus ♦ China's Trade Surplus Widens; Potential Collaboration with U.S. in Oil Field Development ♦ China's Surging Exports to Europe
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