Nov. 21 – China has approved new tax cuts and rebates for the textile industry as part of government measures to support slowing exports.

Export tax rebates on textile products will be increased to 17 percent. The 21st Century Business Herald reported that the proposal to increase tax rebates was approved during the State Council’s latest executive meeting.

According to Customs figures, during the months of January to October, the country’s textile and garment exports came in at US$153.71 billion, up 8.6 percent compared to last year’s figures.

The textile industry will also be qualified for tax cuts that should ease production costs for exporter. There are also plans to increase credit for SMEs in the textile industry and encourage those wanting to modernize equipment.

“In recent months the textile industry has had to face a serious and unprecedented situation due to economic changes at home and abroad,”a government statement said.

“The toughest time for textile exporters has yet to come. As the global financial crisis unfolds, China’s textile exports may not maintain their previous vigorous growth momentum for a long time,” Li Wei, an economist with the Standard Chartered Bank told China Daily.

He added, “With the economies of China’s biggest export destinations – the US, Europe and Japan – falling into technical recession, China’s export sector is doomed to take a beating from worsening overseas demand.”

This month, China has already announced tax rebates on more than a quarter of the goods in the Customs’ tariff list.