Research On The Export Tax Rebate Reform In China

Since the moment of joining WTO, China has achieved rapid development in both its national economy and foreign trade. Nowadays, China has entered a new age: its foreign exchange earnings have increased dramatically and financial resources have improved constantly. The export tax rebate policy has made great contributions to these developments. In 1985, China has begun to carry out the export rebate policy. Since then, constant adjustments have been made on this policy with the development of China’s domestic economy and foreign trade so as to encourage the enthusiasm of domestic enterprises to export. The purpose of China’s export rebate policy has experienced the transition from earning foreign exchange and increasing fiscal levy for China to helping China enter the international market and improving the competitive power of the products manufactured by domestic enterprises. While at present, this policy is designed to adjust the industrial structure. It can be seen from these changes that the export rebate policy at various stages boasts quite specific and short-term regulation target. Furthermore, it has been proved through practice that within a certain time and range, the goals designed for China’s export rebate policy which focuses on short-term regulation have been achieved to different degrees, playing a positive role in dealing with the complex and volatile economic situation both at home and abroad.However, it is obvious that problems are existing in this policy design which lacks long-term goals. Therefore, incessant reflection and in-depth study are needed. In terms of the international economic situation, many new situations like Asian financial crisis and American subprime mortgage crisis have emerged. As a result, unprecedented challenge is faced by China’s economic growth and foreign trade. With the increasing fierce international competition of import and export trade, what problems exist in China’s current export rebate policy? And how to reform it? Closely based on the issues above and the study of the theory of the export tax rebate system both in China and abroad, this paper reviews the reform process of export rebate policy in China since 1994 and generalizes latest contents concerning export tax rebate system reform after the third Plenary Session of the 18 th Central Committee. Then the positive effects of export tax rebate system is analyzed and existing problems and their causes in China’s current export rebate policy are analyzed, emphatically by taking the practices of export rebate in Guangdong Province as examples. Afterwards, the successful experience of export rebate in economically advanced countries is introduced and studied so as to provide inspiration and beneficial reference for the reform of China’s export rebate policy. In the end, in line with the problems discovered and analyzed above, specific countermeasures and measures for reforming China’s export rebate are pointed out.