Devaluation and VAT

摘要

The government has devalued the renminbi by about 5pc against the US dollar since 11 August to help Chinese exports become more competitive. Further devaluations are possible because the government is moving to a more market-related process for exchange rate adjustments. On 10 August, China's ministry of finance confirmed that the country would re-impose VAT on all fertilizers with effect from 1 September 2015.