Released on = October 25, 2006, 2:25 am

Press Release Author = RNCOS

Industry = Energy

Press Release Summary = As the Government of China announced reduction in tax
incentives for many exporters, steel business is set to boom in China.

Press Release Body = On September 15 2006, China declared a reduction in tax
incentives for several exporters. This announcement came from China shortly after
the release of data that showed a record $18.8 Billion trade surplus in the month of
August (2006).

This announcement also came, as finance ministers from Canada, Britain, France,
Italy, Japan, U.S and Germany were to meet in Singapore prior the gatherings of
World Bank and International Monetary Fund. These seven countries, which are the
finance leaders in world, will probably renew calls on China to slacken its currency
in order to help ease economic imbalances in the world.

After the tax rebates, Chinese products will become more competitive on the world
market since the buyers won’t need to pay heavy custom duties on them. After
the financial crisis in Asia in late 1990s, China increased its average export
rebate from 6 percent to 15 percent. Consequently, there was a sudden jump in the
export rate, which doubled to make China the 3rd largest commodity trader globally.

RNCOS has recently published a report “China Steel Industry Analysis
(2006)”. As per this report, “Tax incentives comprise various income tax
exemptions like loss compensation schemes, regional tax incentive, and cuts for the
foreign investors, firms in special economic areas (i.e. SEZ), and firms that
produce for export”.

“This tax rebate for exports, actually a government subsidy to the Chinese
steel industry, was lowered from 11 percent to 8 percent for steel products”,
as per an analyst at RNCOS.

This report helps clients analyze:

- China Steel Export/Import.
- China Steel Impact in Global Context.
- Opportunities for players in this sector.
- Challenges before Chinese Steel Industry.
- Key competitors in Chinese steel industry.

About the report

This report provides extensive research and objective analysis on the China Steel
Industry. It helps clients to analyze the opportunities critical to the success of
the steel industry in China. Detailed data and analysis helps potential investors
navigate the evolving steel market in China.

About RNCOS:

RNCOS, incorporated in 2002, provides Market Research Reports for your business
needs and aims to put an end to your information pursuit. Our expertise in gathering
global business information for industry research, corporate training, growth
consulting, and business consulting, brings reputed companies and firms to us for
business enhancement solutions. We can be your one-stop-shop for Industry research
information and niche market analysis.

To purchase your copy: http://www.rncos.com/Report/IM067.htm
For more information about the report please visit www.rncos.com

To get the latest news on Steel and Energy Sectors worldwide, please visit our newly
launched blog section at http://www.rncos.com/Blog/energy.html


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Contact Details = RNCOS
Shushmul Maheshwari
Head of Business Development
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info@rncos.com