Export tax rebates cut

China has announced it will remove or reduce rebates on the 17% value-added tax on more than 2,000 exported goods, the Wall Street Journal reported. The changes, which will begin July 1, are being seen as the latest attempt to deal with the country's huge trade surplus. "Overly rapid growth of the trade surplus not only aggravates trade friction, but also increases excess domestic liquidity and appreciation pressure on the yuan," said a spokesperson from the finance ministry, which announced the changes. China's trade surplus jumped 73% year-on-year to US$22.45 billion in May. Rebates will be removed for products in 533 categories including salt, cement and fertilizers. Rebates will be reduced for 2,268 products including shoes, clothing and plastic goods.