It is reported that though export is recovering the Ministry of Commerce has no plan to reduce the export rebate for the time being.

An official from MoC said "We are planning to maintain the export stimulus policy unchanged. The export stimulus policies include export financial support and export rebate etc. The Ministry of Finance intends to maintain the policies unchanged this year but may change next year."

Insiders said that the hike of tax rebate has greatly increased the government fiscal pressure, particularly those provinces with large amount of exports. Market has been circulating previously that government was considering reducing export rebate.

He said that "Local governments are willing to adjust the export rebate, but central government insists to maintain the policies unchanged this year."

Mr Huo Jiangguo from MoC also said "I am not very concern about the export in 2010, but it may become much difficult in 2011 as economy situation in Europe is deteriorating and in US, though the economy is turning better superficially many uncertainties remain, particularly when government withdraw the stimulus package."

He said that "As the high energy consumption and high pollutant emission industry, policies in steel sector may be adjusted, but this is not necessarily through the readjustments of export rebate policy."