China Imposing Tax on Aluminum Exports

China announced that it is placing a 5 percent tax on all aluminum exports. The tax is being implemented to keep more of the nonferrous metal on the domestic market.

According to published reports the Chinese government also is imposing a 10 percent tax on exports o f both blister copper and scrap copper, while levying a 5 percent tax on refined copper exports.

Nickel exports would be taxed at 2 percent.

The decision to impose a tax follows a move by the country in 2000 to abolish the tariff to boost exports. However, the country is now attempting to cool its strong growth. Tax changes would spur the closure of smaller, inefficient aluminum smelters.

China had been expected to export about a fifth of its aluminum output last year, and had been a major supplier of the metal in international markets this year.