Q: In recent years, some countries have launched
anti-dumping investigations into certain Chinese export commodities
because they doubt Chinese export-oriented enterprises have
subsidies from the government. What are the reasons for the low
price of Chinese export commodities? Does the current reform of the
refund policy of export goods bring big effect to
export?
A: As its trade position in the world has move up, China has
faced more and more trade disputes. From 1979 to the end of
September 2004, some 34 countries and regions raised 665
investigation cases against 4,000 kinds of Chinese products,
including 594 anti-dumping cases, 2 anti-subsidy cases, 58 for
safeguard measures and 11 cases for special safeguard measures.
These cases affected about US$19.1 billion in exports from China.
China has been the country that has suffered the most anti-dumping
cases in the world for nine consecutive years.
It is a fact that Chinese products are very competitive in the
international market. But it's not fair to say that China is
dumping its products. As is commonly known, China's export
advantage lies in its cheap labor, which results in a competitive
advantage in costs. Additionally, China's export commodities are
mostly low value-added and labor-intensive products with low
technology, thus gaining certain competitiveness in international
market, but not as a result of subsidizing these export
enterprises.
It is an international practice to refund export commodities.
China's implementation of the policy of refunding export
commodities since 1985 has played an important role in increasing
the international competitiveness of its export products, expanding
exports, providing more jobs for its people, maintaining a balance
of international payments and in promoting a sustained and healthy
development of the national economy. China's rank in international
trade has moved one place up annually, which should be attributed
to the implementation of the policy of refunding export
commodities.
At present China is further reforming the policy of refunding
export commodities. The main points are: restructuring according to
different commodities and increasing support from central financial
department. Since 2004, based on refunding quotas of 2003, the
extra refunds should be covered by the central and local government
according to the rate of 75:25. At the same time, while reforming
the refunding policy, China will strengthen the reform of the
foreign trade system. At present, there are many factors holding
down exports. Except refund policy, there are other factors
affecting the price of export commodities, such as the demand of
international market, quality of products, price, and efforts made
by export enterprises. In general, the restructuring of the refund
policy will not bring great impact on China's export.