Japanese media reported that the Japanese Government has decided to impose import restrictions on Chinese shiitake mushrooms, Welsh onions and rushes from April 23 to November 8.

MOFTEC officials said the issue had not been concluded yet and refused to comment on what actions China will take in response.

It has been reported that if the two governments fail to reach an agreement before November 8, Japan would extend the temporary restrictions to four years.

MOFTEC officials seem to be optimistic at present that it will turn out well for China in the end.

The restrictive measures are widely seen by analysts as being politically motivated as the Japanese Government tries to win farmers' support for the approaching election.

The temporary safeguards are permitted under the World Trade Organization rules to give breathing space to domestic industries threatened by imports, said experts.

MOFTEC officials admitted that some Chinese farm exports to Japan increased rapidly last year as Japan was recovering from the negative influences of the Asian financial crisis.

Official statistics indicate China was the source of about 40 per cent of Japan's vegetable imports last year.

East China's Shandong Province, which provides about 70 per cent of China's vegetable exports to Japan, said the restrictions would deal a hard blow to local farmers and companies.

"The restrictive measures might cause tens of onion processors in Shandong to go bankrupt,'' said a local trade official. Shandong is a major supplier of onions and mushrooms.

Liu Chenglu, an official with the Shandong provincial government, called local farmers and vegetable exporters to watch closely for new trends in the issue and try to export more of other kinds of vegetables.

He also urged them to diversify their market outlets and improve the quality and added value of their products.

(China Daily 04/12/2001)