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China's high-tech exports face trade barriers


Post Date: 30 Jan 2015    Viewed: 594

Trade frictions dented exports of high-tech products and become a new concern for China andits trading partners last year, a top official said on Thursday.

Shen Danyang, a spokesman for the Ministry of Commerce, said that after China became theworld's largest goods trader in 2013, many countries started to curb the import of Chineseproducts to narrow trade deficits

"We noticed that China's photovoltaic products, wind turbines and smartphones haveencountered more trade investigations in 2014," said Shen. "The United States, Canada andAustralia have all launched anti-dumping and countervailing duty investigations on Chinesephotovoltaic products, an emerging change in China's foreign trade last year."

With the European Union also launching anti-dumping investigations earlier this month, Shenurged the EU to give sufficient defense opportunities to Chinese companies and review relevantdata objectively.

Twenty-two countries and regions launched 97 investigations on exports of Chinese productsinvolving $10.49 billion in 2014, including 61 anti-dumping and 14 countervailing dutyinvestigations. The country confronted 94 trade disputes in 2013.

Zhao Ying, a researcher at the Beijing-based Institute of Industrial Economics of the ChineseAcademy of Social Sciences, said: "Because China is undergoing an industrial upgrade boom,the nation is capable of exporting more high-tech or high-value added products to the globalmarkets. But such a change has affected the market share of high-end products manufactured bydeveloped nations."

Zhao said developed countries have no choice but to impose trade investigations on Chineseproducts in a bid to protect their market share in the world.

"After all, high-tech products can generate more profit when compared with garments, footwearand other low-end products that China used to manufacture overwhelmingly," Zhao said.

In addition, the trade disputes extended to hardware, food, pharmaceuticals and mining productsin 2014. In the meantime, China's trading partners including the US, Canada and Australialaunched 27 cases involving $2.32 billion against China's steel exports.

Sang Baichuan, director of the institute of international business at the University of InternationalBusiness and Economics in Beijing, said that the value of affected exports last year "accountedfor a larger share in overall exports than the average level over the past decade, showingintensified trade friction involving Chinese products".

"China will continue to face frequent trade friction and there is no reason to be optimistic aboutthe prospects if we look at the country's international trade environment and the resurgentprotectionism in the world," said Sang.

"Meanwhile, the recovery path of the global economy is proving to be more complex thananticipated. The uncertainties surrounding the economic recoveries in the US and the EU,together with concerns over employment prospects, suggest high risks of trade remedymeasures against Chinese exports to protect local employment," he said.

Highlights from the briefing

1.China will over time reduce export quotas for metals to comply with a World Trade Organizationruling that these curbs are discriminatory.

2.China will urge the new Greek government to ensure Chinese companies' interests in Greece,after it halted the privatization of Piraeus port earlier this week. China believes that bothgovernments are keen to continue to cooperate as they are close trading partners, as well asadvance pragmatic cooperation in various industries to achieve progress and bring financialbenefits to people in both nations.

3.China expects the Mexican government to respect international business rules and provideequal treatment to the China-Mexico joint consortium, which won the $3.75 billion high-speed railproject last November.

4. Trade with countries along the Silk Road Economic Belt and 21st Century Maritime Silk Roadamounted to $1.12 trillion in 2014. Investment by Chinese companies in these countries reached$103 million in the first 11 months of last year.

Related story: China turns to rail , nuclear to energize exports by Zhao Yinan, ChinaDaily

China will lift sluggish exports by promoting rail, nuclear power and surplus products in overseasmarkets after trade growth fell short of its target last year.

The exploration of overseas markets for railways, nuclear power and other sectors involving theuse of large-scale equipment will be upgraded through joint-ventures and public-privatepartnerships, top members of the State Council decided on Wednesday. Premier Li Keqiangpresided over the executive meeting.

Industrial resources in those sectors should be integrated, according to a statement releasedafter the meeting. The decision was in line with the ongoing merger of the country's top two trainmakers, hinting that a similar overhaul in related industries could be possible.

Industries with overcapacity, including steel, nonferrous smelting, building materials and textiles,are also included in China's latest plan to reach out to overseas markets, the statement said.

The statement said the plan will become another engine to drive the country's exports and helpwith needed upgrading of domestic industries.

China has relied heavily on the export of large-scale equipment, such as railways and nuclearpower facilities, to boost trade after missing its growth target for the third consecutive year.

The country's foreign trade rose by 3.4 percent last year, far behind its target of 7 percent.Exports grew by 4.9 percent last year to 14.4 trillion yuan ($2.32 trillion), and the surplus widenedto 2.35 trillion yuan.

In its latest move, China CNR Corp, a leading manufacturer of locomotives in China, announcedan export contract for subway trains with the United States on Jan 27. It was the first foray into theUS rail transit market, Xinhua News Agency reported.

The manufacturer will sell 284 subway trains worth 4.12 billion yuan to equip Red and Orangesubway lines in Boston, the announcement said.

Wang Mengshu, an academic at the Chinese Academy of Engineering who specializes in railand infrastructure projects, said China boasts the longest rail lines in the world-proof of itstechnological success-and Chinese rail companies' prices are more competitive thanJapanese and German companies.

"Railway exports invigorate the whole industrial chain, including the manufacturing oflocomotives, parts and signals," he said.

Chinese companies are more competitive since they are able to offer a whole package ofservices, including infrastructure construction, locomotive manufacturing, maintenance andprofessional training, Wang said.

Wednesday's executive meeting also brought a decision to build more business incubators toprovide logistics, legal and accounting services for startup companies.

It asked local governments to streamline the administrative procedures for small and microcompanies, and to provide offices at low cost or subsidize their rent, Internet and other fixedexpenses.

The meeting pledged to use government-backed funds and tax exemptions to support early-stage scientific and technological companies, which often face difficulties in borrowing capitalbecause of their lack of tangible assets.

Angel investors, crowd funding, a regional stock exchange market and intellectual propertymortgages will also be encouraged to support startup businesses. 


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