Jump to ContentJump to Main Navigation
The Oxford Companion to the Economics of China$
Users without a subscription are not able to see the full content.

Shenggen Fan, Ravi Kanbur, Shang-Jin Wei, and Xiaobo Zhang

Print publication date: 2014

Print ISBN-13: 9780199678204

Published to Oxford Scholarship Online: December 2014

DOI: 10.1093/acprof:oso/9780199678204.001.0001

Show Summary Details
Page of

PRINTED FROM OXFORD SCHOLARSHIP ONLINE (www.oxfordscholarship.com). (c) Copyright Oxford University Press, 2018. All Rights Reserved. Under the terms of the licence agreement, an individual user may print out a PDF of a single chapter of a monograph in OSO for personal use (for details see www.oxfordscholarship.com/page/privacy-policy).date: 22 January 2019

Using tax-based instruments for innovative China’s trade rebalancing

Using tax-based instruments for innovative China’s trade rebalancing

(p.145) 21 Using tax-based instruments for innovative China’s trade rebalancing
The Oxford Companion to the Economics of China

John Whalley

Jing Wang

Oxford University Press

This chapter proposes the use of tax-based initiatives to address China’s trade imbalance as well as alleviate exchange rate pressures. The proposal made here is that if China were to switch its value added tax (VAT) regime from the current destination basis (DB) to an origin basis (OB), the effect would be both to significantly reduce its trade imbalance and increase China’s and the world’s welfare. This effect reflects the feature that, under a VAT destination basis, imports are taxed while input taxes are rebated (as currently), while under an origin basis, imports enter tax free but exports receive no tax rebate.

Keywords:   tax policy, taxation, value added tax, trade imbalance, exchange rates, import tax

Oxford Scholarship Online requires a subscription or purchase to access the full text of books within the service. Public users can however freely search the site and view the abstracts and keywords for each book and chapter.

Please, subscribe or login to access full text content.

If you think you should have access to this title, please contact your librarian.

To troubleshoot, please check our FAQs , and if you can't find the answer there, please contact us .