A Study Of Export Rebate System And Its Impact On Foreign Trade In China

Since the reforming and opening in China, our foreign trade has developed rapidly with upstanding growth all along. Particularly with the entering into WTO, trade surplus of China keeps increasing by average of 55.4% year-on-year, which has turned into the prominence and focus of Chinese foreign trade. In order to restrain the over-growth of exportation and balance the surplus, export rebate policy in China has been adjusted for several times since 2004. This adjustment has been one of the important measures in the macroeconomic control in China.Due to the importance of the export rebate policy, the paper delivers the studying of relative theories and systems in our country, constituting a mathematic model to validate the relations between export rebate and amounts, and aims to give suggestions on improving export rebate system for being better utilized in Chinese macroeconomic.Firstly, this paper traces back to some relevant theory of export rebate, expounds the historic development and current stage of Chinese export rebate and brings forward the main problems in the executing system nowadays. Then, it compares Chinese export rebate system with other countries' and proposes some recommendable suggestions to existing problems on our export rebate system. Finally, it sets up the mathematics model for the impact on the export, delivers a demonstration study about the efficiency of the macro-controlling policy to export rebate, and offers some suggestions on how to better control the foreign trade surplus.This paper outlines that the faulty system of export rebate in China keeps the export rebate policy from utilizing efficiently. It's necessary to establish a whole value-added tax system, choose appropriate ways to operate, adopt advanced management measures, co-operate closely in departments and take effective security measurements to ensure the export rebate takes effect smoothly in any country. This paper makes a conclusion by demonstration studying of the efficiency of export rebate policy with mathematics model that, the drop in the rate of export rebate can hold back the increasing of export amounts and is a kind of effective policy-controlling measurement while it postpones to show the efficiency and in a short term has the possibility to take a contrary efficiency what the policy doesn't suppose to. GDP influences mostly the export amounts except the exchange rate \ price and export rebate amounts. On suggestions, this paper concludes that the controlling of trade surplus is a complex and all-sided project, which needs to harmonize the relation in every target and task, and seek a best point of balance in every target. All the controlling measurements including the export rebate policy shall follow the rules of all-side \ balance \ difference and stability.