China increases export tax rebate for toys and textiles

What a difference a year makes. It was just least year that China slashed the export tax rebate on a wide range of items to reign in the over-heating economy and export industry. Now with global demand cooling and a U.S. recession on the horizon, China is increasing the export tax rebate on toys and textiles:

As of November 1, the export tax rebate on clothing and textiles will be raised to 14% from the current 13%. The tax rebate on toys will be raised to 14%, from the current 11%. These increases are part of China’s efforts to help factories during the global economic crisis.

For those of you who don’t know, many manufacturers in China rely almost entirely, if not entirely, on the export tax rebate for their profit. Any increase in the rebate means a better bottom line while a reduction reduces incentives to export.