SteelOrbis Shanghai
On November 12 an executive meeting of China's State Council presided over by Premier Wen Jiabao decided to implement four new measures for the purpose of expanding domestic demand and stimulating stable and relatively rapid economic growth. The four measures in question involve:
1. The checking and approval of a number of fixed assets investment projects, including the construction of a west-east gas pipeline, a nuclear power plant, and airport infrastructure.
2. The raising of the export tax rebates paid on 3,770 types of goods, and the adjustment of export duties for some products. The meeting has decided to raise export tax rebates on products in labor-intensive industries, for electro-mechanical products and other much-affected products, effective as of December 1, 2008. It was also decided at the meeting that export duties on some steel products, chemicals, and grain will be cancelled.
3. The organization of the reconstruction fund dedicated to the earthquake-hit zone.
4. The further strengthening of efforts on the restoration and rebuilding of the forestry ecosystem.
Because of limited time, the meeting of the State Council has only issued the principle stipulations, leaving details to be discussed by the Ministry of Finance and the Ministry of Commerce based on the proposals from the China Iron and Steel Association (CISA). According to the current situation, export duties on steel products under 67 HS codes will be cancelled as of December 1, 2008, including all varieties of hot rolled coils, hot rolled medium plates, alloyed narrow steel strips, large profiles (including large H-beams), alloyed steel bars, most kinds of steel wires, and various welded pipes, with export duties remaining unchanged for 25 HS codes (including 200 series stainless steel, rebar, wire rod, bar, medium and small profiles, and uncoated steel wire). In addition, pig iron, semis, steel ingots, stainless semis and alloyed semis are exempt from the said change.