Beijing puts new curbs on processing trade

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BEIJING, July 24 (PTI): China has announced a new policy that seeks to curb the development of process trade in labour-intensive industries, in a bid to reduce its soaring trade surplus and growing trade friction with major trading partners.
The new policy, to take effect on August 23, covers 1,853 products in plastics, furniture and textiles and other labour-intensive industries.
Under the new policy, enterprises engaged in the production of the affected products are required to have guarantee deposits in the Bank of China, the designated bank of China Customs, while registering their process trade contracts with the authorities, a statement from the ministry of commerce and China Customs said.
If these enterprises fail to implement such contracts, they would lose their deposits and interest to the customs house, it said.
"We are striving to improve the development of China's processing trade in a bid to promote trade balance and reduce trade surplus," Vice Minister of the MOC, Wei Jianguo said.
According to the statement on the ministry's website, the move targets high polluting and high-energy-consuming industries in eastern regions of China. These regions include Beijing, Tianjin, Shanghai, Liaoning, Hebei, Shandong, Jiangsu, Zhejiang, Fujian and Guangdong.