Preferential Policies Continue To Aid The Chinese Canned Fruit Industry

The Chinese government has instituted policies speeding up the processing of tax rebates to assist canned fruit exporters in the country. The worsening economic climate has impacted the country’s canned fruit industry, with rising shipping prices and high production costs limiting profit margins. Pingyi County, China’s largest canned fruit production region, is the most affected area, and processors in that region have welcomed the recent policy changes with open arms.

Significant efforts have been made by the Pingyi County Taxation Bureau, allowing canning companies in the region to enjoy quick tax rebates along with several preferential policies. Canned peaches are the main export from Pingyi, with most shipments destined for the US, Germany, Japan, and South Korea. The expedited tax refund process has aided the sustainability of canned fruit exporters, as evidenced by the timely arrival of the tax rebate that helped firms with much-needed capital during the peak period of the export season.

Pingyi County has also instituted policies offering deductions to canned fruit processors for research and development (R&D) expenses. These policies have driven technological innovation in the area, and improved the efficiency and productivity of the canning process. This has led to the canned fruit industry growing rapidly in Pingyi, with processors attracted by preferential policies.

These policies have played a part in the success of the current canned fruit export season. Between January and August 2022, Chinese canned fruit exports rose to USD 491 million, a 46% increase from the previous year. Canned peaches, mainly produced in Pingyi County, reached 103,900 tons, a 41% YoY increase, signifying the stability of the canned fruit industry in the region. Shandong Province exported USD 75.39 million worth of canned fruit during this period. Pingyi is the largest canned fruit production region in the province and was mostly responsible for the 68% YoY improvement in sales. China exported canned fruit to 113 countries during the first eight months of the year. Most of the country’s canned fruit went to the US, Japan, Canada, Thailand, Germany, Australia, Malaysia, and Indonesia. The value of shipments to the US and Canada increased by 60% and 65%, respectively.

The Chinese government is expected to continue to optimize taxes, ensure that preferential policies are enacted and promoted, and inject funds for market players. This approach could act as the catalyst for the growth of the sector in the next two years.