70% of Chinese Exports Benefit from VAT 'Subsidy': Prof

4:50 AM ET Mon, 18 June 2012

"Many Chinese firms buy lots of parts and components abroad and have to pay 17% VAT on them and the government gives them back some of that VAT, but the Chinese government has been ramping up those rebates in sectors it wants to see boosted exports," Simon Evenett, professor of international trade and economic development at the University of St Gallen, told CNBC.