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By Shangguan Zhoudong (chinadaily.com.cn)
Updated: 2007-08-08 14:53

Special coverage: Auto Shanghai 2007
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China eliminated or cut tax rebates for more than 2,800 export items from July 1 this year, in perhaps its boldest move yet to rein in exports since it joined the World Trade Organization in 2001. The affected items account for 37 percent of all export products, according to the Ministry of Finance.

Tax rebates for rubber products were slashed from 13 percent to 5 percent. Some listed tire companies announced that the tax rebate cut would affect their performance and informed investors to be wary of risks.

Qingdao Yellow Sea Rubber Co Ltd 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 also noted the negative impact.

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The full text is available in the August Issue ofAutoChina.