In an interview with reporters here today, commerce minister Chen Deming said that the export tax rebate of the textile and garment industry showed that Chinese officials still support exports of labor-intensive products.

Since August 1st, the export rebate rate of some textiles and clothing has increased from eleven percent to thirteen percent.

This is the first time that the government has made a callback since the implementation of export tightening policies in two, 00 and six years.

Chen Deming said that although the export tax rebate of the callback is only two percentage points, it gives a signal to the entire business community and the international community that the Chinese government still supports exports of labor-intensive products.

Influenced by such factors as the sharp increase in costs, the weakening of external demand, the appreciation of the renminbi and the effectiveness of export tightening policies, the export growth rate of labor intensive industries, such as textiles and clothing, has slowed down significantly compared with the past. The profit margins of enterprises have dropped to a historical low point, and many small and medium-sized enterprises have been forced to withdraw from the market.

According to customs statistics, from January to June, clothing and clothing accessories exported 49960000000 US dollars, an increase of three point four percent, and export of textile yarn, fabrics and products increased by US $31720000000, an increase of twenty-six point eight percent.

Chen Deming said that officials are concerned about the difficulties currently facing labor-intensive industries and have made policy adjustments in a timely manner.

However, the official support for the export of labor-intensive products also embodies the characteristics of "holding pressure".

In the current export tax rebate adjustment, the government has raised the tax rebate of textile industry, and has also cancelled part of the export tax rebates of "two high one capital" products.