Do all Chinese goods and Chinese jobs get massive subsidies?
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There are specific tax breaks for those who are focused on export. Its the same in India.
It's partly why a few years ago people were shipping mobile phone covers and screen protectors for less than the cost of postage.
It's partly why a few years ago people were shipping mobile phone covers and screen protectors for less than the cost of postage.
D
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They pay the VAT on imports, which can be refunded if the goods are for finished products for export.
Pretty much the same everywhere.
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Nothing to do with VAT. India for example has 5 different export incentives:
1. RoDTEP (Rebate of Duties & Taxes on Exported Products scheme)
2. SEIS (Service Exports from India Scheme)
3. RoSCTL (Rebate on State & Central Taxes and Levies scheme)
4. EPCG (Export Promotion Capital Goods Scheme)
5. GST refund for exporters
China provides goods specific rebates for exporters, though these have been reduced to focus more on the domestic market. You are also exempt from Consumption tax.
1. RoDTEP (Rebate of Duties & Taxes on Exported Products scheme)
2. SEIS (Service Exports from India Scheme)
3. RoSCTL (Rebate on State & Central Taxes and Levies scheme)
4. EPCG (Export Promotion Capital Goods Scheme)
5. GST refund for exporters
China provides goods specific rebates for exporters, though these have been reduced to focus more on the domestic market. You are also exempt from Consumption tax.
D
Deleted member 323070
The topic of the thread is China.
They create some taxes, they provide some rebates, and they eliminate some tax incentives.
It's called reacting to market forces.
When Trump does it, many, possibly includng you, rejoice in it.
The biggest advantage that China has is their currency is pegged to the US dollar. So they have an unfair advantage when exporting. If their currency floated, it would appreciate in value a lot, meaning their exports would get more expensive
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Not since 2005.
Not massive subsidies though and not on everything
Chinas Labour rates and production overheads are way cheaper…..and if America doesn’t want cheap goods from China it will have to suffer a bit hit to its economy.
Haven't they also has the advantage whereby their currency not being openly traded, they can and do devalue at will giving them an unfair advantage.
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I think you could quite possibly be right.
I cannot find any evidence that might suggest he thinks that either.
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IMF doesn't seem to agree with you
IMF Working Papers Volume 2024 Issue 180: Trade Implications of China's Subsidies (2024)
"Volume 2024 (2024): Issue 180 (Aug 2024): Trade Implications of China's Subsidies" published on 23 Aug 2024 by International Monetary Fund.
elibrary.imf.org
Legal-disclaimer: IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.IMF doesn't seem to agree with you
IMF Working Papers Volume 2024 Issue 180: Trade Implications of China's Subsidies (2024)
"Volume 2024 (2024): Issue 180 (Aug 2024): Trade Implications of China's Subsidies" published on 23 Aug 2024 by International Monetary Fund.
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others also agree
“It’s you, not me”: China’s Subsidies and Global Trade Tensions - Australian Institute of International Affairs
China’s extensive use of subsidies is a significant driver of global trade tensions, influencing market dynamics and prompting concerns about a potential “subsidy race” among nations. With more anti-dumping measures being taken out against the nation, China may be required to rethink its...
www.internationalaffairs.org.au
D
Deleted member 323070
It's shocking that governments would offer subsidies to their commercial and industrial sectors to increase exports.
others also agree
“It’s you, not me”: China’s Subsidies and Global Trade Tensions - Australian Institute of International Affairs
China’s extensive use of subsidies is a significant driver of global trade tensions, influencing market dynamics and prompting concerns about a potential “subsidy race” among nations. With more anti-dumping measures being taken out against the nation, China may be required to rethink its...
How unfair of them, not cricket at all.
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UK Export Finance publishes its annual results for 2021-22 and launches a new mission statement.
