Healthy reforms in foreign trade policy has led Chinese international transactions to return on to the right track after posting negative growth in both import and exports segments at early four months of ongoing year. Although, the industry gurus are showing some concerns regarding the future outlook of foreign trading development in China.
According to findings released by governmental officials, the total revenue generated by import and export activities valued to 17 trillion Yuan during the initial phases of the year which represented annual decline of 0.6%.
After segmentation, the total exports stood at 9.1 trillion Yuan in the first eight months period, showing 2.1% yearly increment, while 7.9 trillion Yuan was being contributed by imports in total foreign trade drop 1.1% from prior year.
Therefore, after revising the foreign trade policy, China experienced a major trading surplus amounting 1.2 trillion Yuan during the starting period, while reporting an annual increase by 28.7%. All the improvements in rising up the foreign trading are due to state efforts that have been taken in May to put some air into the foreign trading such as tax adjustments for the exporters and loan requisitions, as reported by China Business journal.
Moreover, in spite from the fact of shrinking foreign trade in recent past months; lift up the reservations of exporter’s community regarding potential growth resulting in the obstacles found in acquiring loan and sluggish tax return policies.
Therefore, under the tax return system in foreign trade policy, Chinese items that are traded internationally are enabled to impose the return of consumption and value-added taxes. The key idea behind this action is to permit Chinese products for penetrating in overseas market without bearing tax fees, while promoting the products to race with other correlative offerings.
Chinese foreign trade policy enables the traders to run off from the loop and double-cross the government for tax exemptions. However, the subsequent measures for retaliate with such frauds have turned down the momentum of tax returns practices that will create repercussions over exporters to maximize their undue capital earnings, reported by weekly.