(Adds details, comments from State Council)
BEIJING, Nov 12 (Reuters) - China moved on Wednesday to boost its export sector by increasing tax refunds applicable to more than 3,770 items from next month, the latest step in its campaign to bolster its flagging economy.
China's State Council, the cabinet, also decided to scrap export taxes for some steel and chemical products and grains and reduce the export tax on fertiliser, according to an official announcement published on the central government Web site.
The tax rebates were the second batch announced in less than one month, potentially covering more than half of all exporters.
The latest round of rebates are aimed at exporters in labour-intensive sectors, particularly producers of electrical and mechanical goods, as part of a campaign to "stimulate domestic demand and to promote stable but rapid economic growth", the statement said.
This would cover 27.9 percent of all Chinese exports.
Last month, China announced an increase in tax rebates that targeted textile, toy and clothing producers, covering more than a quarter of all exports.
The government had already increased export tax breaks for the garment sector in July.
The export tax on grains ranges from 5 percent to 20 percent while that for steel products is as high as 25 percent.
Xinhua cited China's civil aviation chief, Li Jiaxiang, as saying the country would also begin investing 250 billion yuan in airport projects from 2010, as part of the government's 4 trillion yuan stimulus package announced this week. (Reporting by Langi Chiang and Zhou Xin; Editing by Ruth Pitchford)