China to cut some import, export taxes to boost ailing trade sector

Shanghai

CHINA said on Wednesday it would cut some import and export taxes next year to boost its ailing trade sector, raising concerns that cheaper Chinese products could exacerbate a global oversupply of basic materials such as steel and chemicals.

Trade tensions are already growing with Europe and the United States which have accused China of dumping steel on world markets, and industry experts said the tax breaks on other types of steel, iron and other products could aggravate supply gluts.

The intense pressure facing Chinese manufacturers was clear in data early in the day which prompted worries that the world's second-largest economy could be falling into a Japan-style deflation tr…