If you aren’t familar with what “Chinese Fuel Tax Break” they are talking about here – it is the Chinese Government bailout of its Oil industry (mainly 2 majors: Sinopec & CNPC, most independents are in “red” so it is also a convenient edge for the government companies) at end of every year since 2004 for several $Billion to cover buying import /domestic crudes at $60-100/Bbl but selling diesel/gas at Government fixed price ~$0.87/gal to China’s domestic agriculture / trucking / logistic industries. These bailouts – as in 2007 – are always labeled as “one-off” single occurrence, but are really ongoing to everyone competing against their goods! Only politicians are stupid enough to buy this.
The ongoing Chinese Government Subsidy for Refineries is getting a jump start earlier in year (under cover of “Preparation for Olympics”) a Fifth year on its “One Time Bailout” program. This is a huge advantage and unfair trade practice for all Chinese based industry by enabling logistical cost to remain at less 25% (~$0.90/gal China vs $4/gal global fuel cost) world cost on fuels despite crude/gasoline prices being at record highs and it needs to be challenged or offset with a tariff.
A more obvious Chinese transportation subsidy on steel and coal coke onto vessels resulted in bankruptcy of 21 US steel companies before the US government managed to enact a trade tariff – appears they are still just as blind.