China oil import tax rebate may be quietly dropped

http://sg.news.yahoo.com/rtrs/20080702/tbs-china-oil-tax-21231dd.html

 

Are they trying to pull brakes on the economy using oil?

For one, it will surely reduce demand for oil in the China Economy, and slow down growth.

Inflation is likely to be higher at the beginning, but with substantially lower demand, prices is likely to go down.

Other materials prices will be higher substantially... leading to unrest within ppl, unless Govt is able to provide a substantial package to all the people, which is really not possible.

 

A small reduction in rebates cannot be ruled out. Drastic actions are never good.

Hee Teck

 

CONFIDENTIAL NOTE: The information contained in this email is intended only for the use of the individual or entity named above and may contain information that is privileged, confidential and exempt from disclosure under applicable law. If the reader of this message is not the intended recipient, you are hereby notified that any dissemination, distribution or copying of this communication is strictly prohibited. If you have received this message in error, please immediately notify the sender and delete the mail. Thank you.