Export rebates should be extended to domestic market

Export rebates, though they increase the revenues of export companies, are subsidies the Chinese government pays foreign consumers. Perhaps they should be extended to the domestic market, says an article on stcn.com. Excerpts:

China has always encouraged exports. Since 1994 export products have in general enjoyed certain tax rebates that largely cover corporate tax. The markets for China's exports are mainly developed countries with professional market systems that guarantee the ability to pay and liquidity, which lowers the cost of export goods.

Some put the blame of the frequent food safety problems on China's huge population, limited resources or the heavy costs companies have to pay. But, in fact, the crux of the matter is companies have compromised product quality for profits under varied cost pressures.

High VAT and the complicated market environment have deprived domestic sales of their original price advantage, while loose supervision and cost shifting have resulted in quality problems. On the other hand, export rebates, though they increase the revenues of export companies, are subsidies the Chinese government pays foreign consumers.

Perhaps we should reconsider whether such a preferential policy could be applied to sales in the domestic market to benefit Chinese consumers.