Cancellation of Export Drawback to Affect,4 Types of Products Like Plastic in China's Shandong Province

[2010-07-06 16:22:04]

As of July 15, 2010, China will cancel the export drawback on some commodities, including part of steels, part of nonferrous metal processing materials, part of plastic and its products, part of rubber and its products, and part of glass and its products.

It is learned that the impact of export-drawback cancellation on Shandong' exports will focus on 4 types of products, including glass products, steel products, cornstarch, and nonferrous metal products.

In 2009, Shandong's export value of the foregoing 4 types of products was respectively USD 367 million, USD 340 million, USD 33.55 million, and USD 22.77 million, with a total export value of about USD 764 million, accounting for 0.96% of the total export value of Shandong Province, down 66.6% year-on-year; From January till May 2010, the export value was respectively USD 233 million, USD 299 million, USD 20.86 million, and USD 14.43 million, up 99.7% year-on-year. Though the export value of the foregoing 4 types of products only accounted for 1.68% of Shandong's total export, the increment accounted for 3% of Shandong's export increment, pushing up 1.01 percentage points of the export of Shandong Province.

According to the Department of Commerce of Shandong Province, following the export-drawback cancellation, the export competitiveness of the foregoing 4 types of products of Shandong Province will be weakened to a certain extent in the short term, some products may even withdraw from the international market, influencing 1 to 2 percentage points of Shandong's export growth rate in the second half of the year; However, in the long term, the export-drawback policy will be beneficial for the foreign trade enterprises to accelerate the pattern transformation and structural adjustment.

Source: ETCN
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