China to raise export subsidies

In a move designed to safeguard its manufacturers during recession, China has gone against earlier plans to lower export subsidies and has proposed to raise the current level from nine per cent to somewhere between 11 and 14 per cent.

The move is designed to stimulate exports. However, earlier this year the Government had planned to lower the rate from nine per cent down to four – something that would have drawn China’s domestic sales closer in line with those of its exports.

Anti-dumping duty (currently 48.5 per cent) is due for renewal in July 2010.