Chinese are paying more for 'made in China' products

The Chinese consumers are paying most for products stamped “made in China”. As the largest manufacturing base in the world China is exporting countless different products to the world. The business owners and experts say that the main reason for this fact is the export tax rebates policies. This policies is hold accountable for the fact that Chinese consumers have to pay most for foreign produced products.

The economist Chen Zhiwu claims that not only the prices of foreign-made luxury goods are higher in China, but also the domestic-made products such as clothes, computer, etc. are also more expensive here than in for instance the US market.

The export tax rebates policies are need to help keep the prices competitive. Otherwise profits can be lost. The tax refund must be adjusted to keep the stress of the country’s taxation. Because China has handled 130 billion yuan of export tax rebates, which is a lot. The policy has to stay but appropriate adjustments are needed.

China's export value-added tax (VAT) rebate policy once promoted the country's exports and fuelled economic growth. However, the side effect of the policy is growing and appropriate adjustment is needed, the government has to look at it and take measures. The stress on the country’s taxation is enormous.

Thibaut Delsoir

Source: http://www.chinadaily.com.cn/business/2010-05/05/content_9813692.htm