Recently, Chinese Government announced that the export rebate rate of 2831 categories accounted for about 37 percent of total export products would be adjusted from July 1.

The export rebate rate of clothing will decrease from 13 to 11 percent. Zhejiang province, which is the biggest exporter, will be affected the most. Presently, profit of clothing industry here is about 7 percent, which is feared to see a slump.

The export rebate rate of sewing machinery industry will decrease from 13 to 9 percent. In the first five months of the current fiscal year, Zhejiang province exported US $108 million worth of textile machines, with a rise rate of 107 percent.

The silk industry of Zhejiang province is not much concerned about these export rebate adjustment.