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          Trade barriers costly for China

          (Xinhua)
          Updated: 2006-12-25 22:47

          Technical barriers established by foreign countries cost Chinese exporters up to 69.1 billion US dollars last year, said a report from the Commerce Ministry on Monday.

          Related readings:
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          Legitimacy of trade barrier considered
          Ministry sounds warning on trade barriers against China
          Trade barrier investigation: Ministry lowers requirements for application

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

          The report said the European Union and the United States had taken the lead in setting high technical standards for Chinese export products, followed by Japan and the Republic of 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, said the report.

          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, said the report.

          The government started to set up centers across the country this year to analyze 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 centers are scheduled to be set up by 2010 to cover more than half the country's export commodities, according to the ministry.



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