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The Ministry of Finance and the State Administration of Taxation announced Thursday that they will raise the tax rebate rates for some mechanical and electrical products with high technology content and added value from January 1, 2009. This is the fourth time this year that China has raised export tax rebates after raising 3,770 items on December 1. "Since the beginning of this year, China has repeatedly used tax measures to adjust its trade policy, which is necessary to maintain steady and rapid economic development in the context of the financial crisis." Deputy director of the Finance Department of the Ministry of Finance Bai Jingming said in an interview with reporters. Bai jingming pointed out that the adjustment of export tax rebate policy involves two types of products, one is high-tech products in the aviation industry, the other is export advantages and high value-added products, such as motorcycles. China is the largest motorcycle exporter in the world. Under the pressure of shrinking domestic and foreign market demand, the development of the motorcycle industry is under great pressure at present. Raising the export tax rebate rate will help reduce the export burden of enterprises and maintain the stable growth of foreign trade. For China, whose dependence on foreign trade is as high as 60%, 2008 was the year in which China's foreign trade encountered the biggest twists and turns in the past decade, and it was also the year in which trade policies were frequently adjusted. From "maintaining steady export growth" at the beginning of the year to the central Economic Work Conference at the end of the year, it was clearly proposed that "combining domestic demand expansion with external demand stabilization". Behind the adjustment of foreign trade policies, China's intention to stabilize foreign trade growth and ensure economic growth under the influence of the financial crisis was highlighted. According to statistics from the General Administration of Customs, China's exports grew by only -2.2% year-on-year in November, the first negative growth in seven years, after the year-on-year growth of less than 20% in October 2008. The decline in foreign trade exports and the difficulties encountered by some export enterprises have attracted the attention of the central government and relevant departments. In view of the risks and pressures faced by the export industry and the changes in the international economic situation, China has raised the export tax rebate rate for textile, clothing, light industry and some mechanical and electrical products three times before this adjustment, and the comprehensive tax rebate rate has been increased by 1.6 percentage points. Following the increase from 11 percent to 13 percent on August 1 this year, China raised the export tax rebate rate for some textiles and clothing to 14 percent from November 1, 2008, and will also increase the export tax rebate rate for some toy products to 14 percent. China has also raised the export tax rebate rate for high-tech and high value-added commodities such as anti-AIDS drugs, ranging from 9 to 13 percent. Since then, as of December 1, 2008, China has further raised the export rebate rate of 3,770 items of some labor-intensive products, mechanical and electrical products and other products that are greatly affected. At the same time, export tariffs on some steel products, chemicals and grain will be abolished, export tariffs on some chemical fertilizers will be reduced, and tax collection methods will be adjusted. Export tariffs will be levied or raised on individual products. Experts pointed out that, from four increases in the year of export tax rebate policy, although China's foreign trade policy to support enterprises to increase, but the policy adjustment behind the adjustment of the industrial structure is always running through the main line of accelerating the upgrading and transformation of foreign trade industry. 24 at a state council executive meeting proposed to ease export enterprise difficulties, maintain the stable growth of foreign trade policies and measures of seven, including in terms of strengthening fiscal and taxation policies to support, clearly put forward some technical content and high value-added mechanical and electrical products export tax rebates, and emphasized to steadily promote the transformation and upgrading of processing trade. Bai Jing said, as the central economic work conference stressed to "further enhance the capacity of resisting external economic risk", in the context of the international economic structure's adjustment, the adjustment of export tax rebate policy and adjust the industrial structure in our country, the transformation of the mode of economic development of important measures, to cope with the challenge of slowing economic growth, especially improve the export competitiveness is of great significance.