The Chinese government is likely to again implement new policies
this year to curb the growth of processing trade, an official with
the Ministry of Commerce (MOC) said on Wednesday.
Wang Qinhua, an MOC official in charge of the mechanical and
electrical industry and the scientific and technological sectors,
said the government would probably limit or ban the processing
trade of high-polluting and high-energy-consuming industries within
the year based on studies of the domestic and international
markets.
The products covered would come from the list of commodities
that have been cut or had their export tax rebates removed in June,
said Wang, adding that the ministry was consulting relevant
departments and local governments on the issue.
Wang said the customs authorities would take environmental
protection and social security into consideration to set stricter
entry standards for enterprises engaged in the processing
trade.
Meanwhile, the government would continue to encourage
labor-intensive industries to shift from the eastern regions to the
central and western areas, the official said.
The Chinese government on Monday announced a new policy that
seeks to curb the development of the processing trade in
labor-intensive industries covering 1,853 products in plastics,
furniture and textiles and other industries. The policy will take
effect on August 23.
On June 19, the ministry announced that, starting July 1, the
country would cut or eliminate export tax rebates for 2,831
commodities representing 37 percent of the total number of items
listed on customs tax regulations to suppress overheated export
growth and ease frictions between China and its trade partners.
Customs data show the nation's processing trade volume in the
first six months rose 17.6 percent to US$ 440.9 billion, accounting
for nearly half of the China's imports and exports.
China has seen its processing trade volume jumping from US$ 2.5
billion in 1981 to US$ 831.9 billion in 2006.
(Xinhua News Agency July 26 2007)
