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November 21, 2009
         
Foreign trade barriers cost Chinese exporters USD 70 billion
Updated on Monday, December 25, 2006, 00:00 IST
Beijing, Dec 25: Technical barriers created by foreign countries including the United States and the EU cost Chinese exporters, especially the textile industry, up to USD 69.1 billion last year, the Commerce Ministry said here on Monday.

"The textile industry has been most affected by barriers, taking up to 43 per cent of the losses," said a ministry report. "Exports of food, poultry, wood products, electronic and machine products were also greatly affected."

The report said the European Union and the US had taken the lead in setting high technical standards for Chinese export products, followed by Japan and South Korea.

These countries usually added items to inspection and quarantine lists or revised trade regulations on the grounds of environmental protection, consumer health and other reasons, the report said.

Among 22 categories of Chinese export commodities, 18 had encountered technical barriers in 2005, said the report.

Chinese export companies were learning to respond rapidly to foreign technical barriers and improve competitiveness in exports, but there was still a long way to go, the report said.

The government started to set up centres across the country this year to analyse technical standards for foreign market access, issuing regular reports for the government and industries.

Under WTO rules, every WTO member has the legitimate right to question new trade regulations by other nations within 60 days of the promulgation.

However, the lack of assistance from technical experts and the abstruseness of technical standards often frustrate Chinese companies and prevent them from taking effective action.

One hundred technical service centres are scheduled to be set up by 2010 to cover more than half the country's export commodities, the ministry said.

China's monthly trade surplus stood at USD 22.9 billion in November, contributing to this year's total surplus to an all-time record at 156.52 billion dollars.

The year's aggregate trade surplus surged to USD 156.521 billion through November, dwarfing the USD 102 billion for the full-year of 2005.

China's growing trade surplus is a major reason for the rising trade friction with major trading partners.

Bureau Report


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