China to remove, cut some export tax rates

China will do away with export taxes on wheat, rice and soybean starting July 1 to spur exports, the Finance Ministry said.

In other export tax-related measures, the China Daily reported the ministry would cut from 15 percent to 5 percent taxes for indium and molybdenum. New taxes on some steel and tungsten products would be cut to 5 percent from 10 percent. Taxes on export of sulfuric acid would be scrapped.

This shows the government’s intention to stabilize exports amid the continuous drop in growth of foreign trade since late last year, Li Jianfeng, analyst from Shanghai Securities, told the newspaper.

The government says monthly exports have been going down since November of last year and analysts were quoted as saying they don’t expect positive growth until later this year.