Reduced Subsidy to Cost Chinese Tyre Trade Tens of Millions

The Chinese government’s decision to slash tax rebates on tyre exports from 13 to 5 per cent will cost manufacturers tens of millions of dollars. In response Qingdao Yellow Sea Rubber Co Ltd reportedly said that the policy would have a negative impact on its performance and create roughly 10 million yuan (US$1.32 million) in additional costs. Giti Tire Corporation is also said to have noted the negative impact.

China eliminated or cut tax rebates for more than 2,800 export items from 1 July this year, in what China Daily described as: ”its boldest move yet to rein in exports since it joined the World Trade Organization in 2001.” The affected items account for 37 per cent of all export products, according to the Ministry of Finance.