In order to alleviate the outstanding contradictions brought about by China’s excessive trade surplus, to suppress the export of high-energy-consumption, high-pollution, resource-based products and reduce trade frictions, the Ministry of Finance and the State Administration of Taxation, the National Development and Reform Commission, June 18, 2007 The Ministry of Commerce and the General Administration of Customs issued the Notice of the State Administration of Taxation of the Ministry of Finance on Decreasing the Export Tax Rebate Rate of Certain Products. Starting from July 1, China's adjustment to the export tax rebate rate for some of its products officially came into effect. Among them, the export tax rebate for some chemical products was cancelled, or the tax rate dropped from 13% to 5%. The adjustment of the export tax rebate rate involved a total of 2831 products, accounting for 37% of the total number of customs duties, and the chemical products involved accounted for about 95% of the total number of chemical products, which means that the chemical industry was the current export tax rebate policy adjustment. The industries that have the most extensive influence and the most influential are the unprecedented changes in the content and scope of chemical products adjustment.
According to the data released by the National Bureau of Statistics on August 15, China's traditional chemical industries including phosphorus chemicals, soda ash and dyestuffs have all suffered a great impact since the export tax rebate adjustment policy officially came into effect. However, many companies also expressed their understanding and support for the export tax rebate adjustment, and took measures to actively respond. Some enterprises stated that the export tax rebate rate will be lowered, the export volume will be reduced, and the supply of domestic market will increase. This will inevitably exacerbate the degree of market competition in industries with overcapacity. Occupied by large amounts of resources, high energy consumption, heavy pollution, and disruption of the market, some small businesses will be eliminated, the concentration of dominant industries will increase, the domestic market is becoming more formal.
According to the data released by the National Bureau of Statistics on August 15, China's traditional chemical industries including phosphorus chemicals, soda ash and dyestuffs have all suffered a great impact since the export tax rebate adjustment policy officially came into effect. However, many companies also expressed their understanding and support for the export tax rebate adjustment, and took measures to actively respond. Some enterprises stated that the export tax rebate rate will be lowered, the export volume will be reduced, and the supply of domestic market will increase. This will inevitably exacerbate the degree of market competition in industries with overcapacity. Occupied by large amounts of resources, high energy consumption, heavy pollution, and disruption of the market, some small businesses will be eliminated, the concentration of dominant industries will increase, the domestic market is becoming more formal.