(Bloomberg) -- China is ending its export tax rebate policy for aluminum and copper, while lowering it for some refined oil and battery products as overcapacity concerns have grown among global trading partners.
Starting from December, Beijing will cancel export tax rebates for aluminum and copper, the Ministry of Finance and State Taxation Administration said in a joint statement on Friday without stating a reason. The measure, aimed at supporting the country’s sales abroad, will be cut for some refined oil, solar, battery and non-metallic mineral products to 9% from 13%.
Also read: Aluminum Surges After China Cancels Export Tax Rebate on Metals
China has been under criticism for some of its trade practices, and in May the Group of Seven nations said Beijing was hurting the economies of its trade partners through its “comprehensive use of non-market policies and practices.” Between March 2020 and the end of 2021, more than 90,000 companies in the nation enjoyed 37.7 billion yuan ($5.2 billion) in export tax rebates, according to an earlier report from state media outlet China Daily, citing data from the State Taxation Administration.
China’s export growth surged in October to the fastest since July 2022, extending a months-long boost to an economy that is suffering from sluggish domestic demand. Steel exports jumped almost a million tons from September, the second-highest monthly shipment of the metal.
But the strength in exports — their value grew in all but one of the last 12 months — and subsequent outpouring of cheap products has sparked a backlash. In response, markets including the US, South America and Europe have raised tariff barriers against goods such as steel and electric vehicles.
Also read: China’s Copper Production Boom Threatens to Crowd Out the Rest
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