NCTO has studied China's export strategy regarding textiles and apparel and discovered 63 subsidy programs that the Chinese government offers to its textile sector.  Others undoubtedly exist.   Among the largest of the known policies is China's export tax rebate system which allows China to funnel over $30 billion a year in tax breaks to Chinese textile exporters through a 17 percent export tax rebate.  During the worldwide recession of 2009, China increased these export subsidies by ten billion dollars by boosting the export tax rebate from 11 to 17 percent.  China did this at the same time it was promising not engage in protectionism and market distorting practices.

NCTO has studied China's export strategy regarding textiles and apparel and discovered 63 subsidy programs that the Chinese government offers to its textile sector.  Others undoubtedly exist.   Among the largest of the known policies is China's export tax rebate system which allows China to funnel over $30 billion a year in tax breaks to Chinese textile exporters through a 17 percent export tax rebate.  During the worldwide recession of 2009, China increased these export subsidies by ten billion dollars by boosting the export tax rebate from 11 to 17 percent.  China did this at the same time it was promising not engage in protectionism and market distorting practices.

The largest known subsidy is currency manipulation.  By artificially keeping its currency low, China has been able to give its exports a 20 to 40 percent cost advantage.  The result has been a manufacturing behemoth that the Economic Strategy Institute  estimates is responsible for the loss of 1.5 million jobs in the United States and a debt burden on future U.S. taxpayers of nearly two trillion dollars.