Wang Xinpei, spokesman for the Ministry of Commerce, says that based on the current situation of exports and imports in China, China is reviewing adjustments to the export rebate rate of certain commodities, including steel.

Wang Xinpei said at the Ministry of Commerce's regular press conference that to improve the growth mode of foreign trade, the Ministry of Commerce is now researching the export structure of Chinese goods, the export rebate rate of certain commodities and ways to expand imports. A detailed plan will be available soon.

According to China Customs, the trade surplus fell slightly in March. Wang Xinpei attributed this to the unusually late Spring Festival this year, and adjustments China made to the export rebate rate on certain commodities last year.

Data from China Customs also showed that compared with the third and fourth quarter of 2006, China's trade surplus appeared to be falling slightly in the first quarter of this year. Wan Xinpei said that reductions in the export rebate rate help to restrain the expanding trade surplus.

In the second half of 2006, China adjusted the export rebate rate of certain commodities. The export rebate rate for142 steel products was reduced from 11% to 8%. The export rebate rate for textiles, furnishings, plastics, lights, and one or two wood products was lowered from 13% to 11%.

The data reveals that there was trade deficit in Chinese steel in 2005. However, in 2006, 43.01 million tons steel was exported; just 18.51 million tons of steel was imported, a 28.3% drop. The steel trade added US$15 billion to the trade surplus.

By People's Daily Online