China will increase the tax rebate rate for textile and garment exports from 14 percent to 15 percent, an executive meeting of the State Council, China's cabinet, announced Wednesday.
The move would reduce exporters' costs and support the textile industry, the State Council said. But the effective date of the new rate wasn't specified.
In a national plan to invigorate China's textile industry adopted by the State Council Wednesday, the government would also make a special allocation for companies that produce textiles or fibers, or operate in the textile printing and dyeing sector, to upgrade technology and develop domestic brands.
Government departments were told to provide financial support and insurance services to small and medium-sized textile plants.
The government would also announce steps intended to phase out obsolete capacity, eliminate energy-intensive, polluting equipment and technology, and encourage textile and garment makers to relocate from southeastern parts of China to central and western areas.
China has raised the export tax rebate rate for textiles three times since August 2008. The previous increase in November took the rate from 13 percent to 14 percent.
