The Chinese Government has revised the payment process for its export tax rebate system in a bid to spur exports, state-run news agency Xinhua reported.

The agency quoted China’s State Council saying earlier this week that the Central Government is now responsible for paying the entire rebate to eligible exporting firms effective from this year. In the past, provincial governments had the job of paying 7.5 percent of rebates to companies operating in their provinces.

“This reform in the export tax rebate mechanism… helps resolve the problem of different tax rebate payment methods by different entities, and safeguards a unified national market, facilitating the healthy development of foreign trade,” the Chinese cabinet was quoted saying in a statement.

According to news agency Reuters, there were suspicions that some local governments were offering higher tax rebates to firms in their regions to boost competitiveness.

The amendments were announced shortly after China logged an unexpected year-on-year fall of 3.3 percent in exports in January. Imports plunged by 19.7 percent in the same period.