The State Administration of Taxation announced that export tax rebates will be raised for certain textile and garment items to help producers cope with significantly reduced profit margins due to higher costs and the yuan’s appreciation.

From August 1st, tax rebates for certain textile and garment items such as silk, wool yarn, chemical fibre and cotton products, will be increased by two percentage points to 13 percent.

However, the State of Administration of Taxation also announced that export rebates for other products including pesticides, medicine, silver, paint, zinc and battery will be scrapped.

China’s textile and clothing exports rose by 11.1 percent during the first half of the year, 6.4 percentage points less than the same period last year.