China’s New Policy on Tax Rebates will Influence Export Price of Wire Mesh

According to recent reports of Xinhua, China will reduce tax rebates on exports of high energy-consuming, resource-intensive and environmentally-harmful products, Chinese officials say. While most of wire mesh, especially galvanized wire and galvanized wire mesh products fall into this category.

The as-yet unreleased policy is scheduled to take effect around September or October despite strong protests from domestic companies and traders.

Introduced in 1985, the tax rebates for exporters have made Chinese products more competitive on the international market.

And now, we wire mesh manufacturers and exporters in China are facing a difficulty. On one hand, our buyers cannot agree to raise the price accordingly, on the other hand, we must sell our products and must fulfill the contract.

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