Japan’s move to hike its sales tax is likely to depress Chinese export prices to that market, China Daily quoted an expert as saying. “Japanese businessmen will probably take the opportunity to cut prices when bargaining with Chinese exporters. Chinese export businesses have to enhance quality to enlarge profit margins,” Zhang Jifeng, assistant to the director of the Institute of Japanese Studies at the Chinese Academy of Social Sciences, told the paper. “An economic recession with sluggish demand in Japan will drive down demand for Chinese products,” he added. Japan raised its sales tax on Tuesday, taking it to 8 percent from 5 percent, the first increase in 17 years. The rate will go to 10 percent starting Oct 1, 2015.
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