International Steel Prices
April 7, 2019
CRU: Chinese VAT Reduction on Steel – Friend or Foe?
Written by Tim Triplett
By CRU China Analysts
China released a slew of stimulus measures during the NPC and CPPCC meeting in March in order to avoid a material slowdown in economic growth in the short term. Further and more substantial cuts to VAT rates were one of those measures. This followed an earlier VAT reduction from 17 percent to 16 percent for manufacturing industries in May 2018, partly to tackle the downside risks to growth from U.S.-China trade tensions emerging at that time.
