China may raise tax rebate on textile exports

China plans to increase tax rebates on textile exports in a bid to support the textile industry, the Beijing Morning Post reported, citing sources.

Export tax rebates may be raised to 13 pct from 11 pct, while rebates on exported clothing will rise to 15 pct from 11 pct, the report said.

A final decision on the rebates is pending, the report added.

Starting in July 2007, the government cut the industry's rebate to help contain the trade surplus. Since that time, however, Chinese textile firms' profits have been falling because of weaker global demand and intense competition, the report said.

In May, China's clothing exports grew 1.1 pct from a year earlier, the slowest rise so far this year, the report said.