China may adjust taxes to change exports

China plans to adjust its tax system to discourage exports of low end products while encouraging trade in information-technology goods and heavy machinery. In a statement on its website Thursday, the Finance Ministry said the new policy is partly intended to slow the country's trade surplus while promoting "balanced development of imports and exports", the Wall Street Journal reported. China's trade surplus hit US$95.7 billion in the first eight months of the year and is expected to surpass last year's US$101.9 billion. The surplus will likely be a topic of discussion when finance ministers and central bankers meet at the Group of Seven in Singapore this weekend. China charges a 17% value-added tax (VAT) on nearly all goods made in China, even those meant for export. Most countries don't charge VAT on exports.