China removes export incentives included 406 steel products

China announced the first elimination of export incentives from global crisis broke out in 2008, which will affect 406 products from steel to corn starch, Chinese media reported Monday.
The Ministry of Finance and State Administration of Taxation announced the end of the tax refund of such exports as of July 15 after its introduction in September 2008 to cushion the impact of the crisis and economic recession in some sectors.

This is the second bad news this week for Chinese exporters, after Saturday's Bank of China (PBOC, central) to announce a more flexible yuan could lead to a slight revaluation of Chinese currency and, consequently, affect exporters with lower margins.
However, many of the affected exports are key products of the steel industry, but also non-ferrous metals, silver powder, ethanol, corn starch, pesticides, pharmaceuticals, chemicals, plastics, rubber and glass.

These products enjoyed a rebate of between 5 and 17 per cent and most of it is raw materials or goods whose production requires high energy consumption, so the decision is in line with those announced by Beijing's efforts protect the environment.

In the steel sector will be affected at least 48 products that enjoyed a tax return of 9 percent.

Analysts say Beijing's decision was expected after its exports increased for seven consecutive months in his recovery from the crisis.
But it has caused nervousness among the mills, because one of the affected products, rolled steel, was a 25 per cent of the sector's exports in the first four months of the year and affect the larger companies.

The Chinese steel industry, which suffers from overcapacity, has undergone a series of measures against unfair competition or anti-dumping "by the United States, so that the elimination of export incentives to ditch voltages face to the G20 summit this weekend in Toronto (Canada).