Regarding the rumor that the Chinese export tax rebate for finished steel products is going to be reduced - also as part of efforts to push forward elimination of backward capacity in the domestic industry - a government insider has stated, "This is not just a rumor, since the finance ministry has already started work on the issue."
The official added, "This is part of a national strategy to save energy and reduce emissions. There will be an adjustment to the export rebate rates of high energy consumption, high pollution and resource exportation industries. Presently, the major focus is on primary products of the steel industry. The adjustment involves a four percent reduction. Some sectors will face adjustments from 13 percent to nine percent, or from nine percent to five percent or even lower."
Meanwhile, Li Gang, a researcher at the Chinese Academy of International Trade and Economic Cooperation, has stated that the lowering of the export tax rebate would be a violation of the commitment to the multilateral trading system and foreign trade law. He also said the aim to save energy and reduce emissions was reasonable, but it should be achieved by domestic tax law, i.e., by imposing a resource tax.