Emmanuel, a guest at Brad Setser’s blog, provides a primer on China’s export incentives and rebates, some of which the US will challenge at the WTO.

In the comments section, there’s a link to this interesting piece:

Li Deshui, the outspoken former chief of the National Bureau of Statistics (NBS), recently remarked that a considerable part of China’s trade surplus is not real, but in fact comes from “fake” exports by enterprises that fraudulently obtain export rebates from the government… A popular practice is to export certain goods to get tax rebates and then smuggle or import the goods back to sell in the domestic market.