The recent export tax rebates hike for some textile and garment items showed China continued to support export of labor-intensive industries, said Commerce Minister Chen Deming on Saturday.
"Now it's the good timing for labor-intensive industries to restructure their product mix and transform their economic growth mode," Chen said.
Export tax rebates for some textile and garment items had been increased by two percentage points to 13 percent from August 1, a move to help producers cope with the paper-thin profit margins. These items included silk, wool yarn, chemical fibre and cotton products.
He said that although the tax rebates were raised only by two percentage points this time, the message to domestic companies and the international community was clear that the government was backing up the industry development.
Plagued by the appreciating Chinese currency, rising labor and material cost and sluggish foreign demands, the export growth pace of many textile and garment industries had been slowing down, with many manufacturers in southern provinces caught in bankruptcy plight.
(Xinhua News Agency August 3, 2008)