Four major factors restricting China's export of high-tech products

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Last updated at: (Beijing Time) Friday, December 05, 2003

Four major factors restricting China's export of high-tech products

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The General Office of the State Council transmitted on November 12 the document "Some Opinions on Further Implementation of the Strategy of Rejuvenating Trade through Science and Technology" jointly drafted by eight departments including the Ministry of Commerce, the Ministry of Science and Technology, the National Development and Reform Commission and the Ministry of Information Industry.

An official with the department of science and technology of the Ministry of Commerce recently answered reporters' questions relating to the above-mentioned document.

In light of the present situation regarding China's export of high and new technological products, the official said that while tremendous development has been achieved in recent years in China's export of high and new technological products, there also exist some factors restricting the export.

First is the existence of structural contradiction. In terms of product mix, while the supply of China's low-and-medium-end products outdoes demand, and there is an excess of production capacity, China has to rely mainly on the import of high-end core e-information products.

Second is enhanced new trade protectionism worldwide. Due to the depression of e-industry and intensifying international competition, many countries and regions, in order to protect their local markets, vigorously pursue new trade-protectionist policies and measures, as a result, trade frictions have increased and technical trade barriers related to safety standards, quality standards and environment standards have begun to gain ground, which has created big obstacles to the export of China's high and new technological products, and higher production cost.

Third is the diversified trend of competition methods for trade in high and new technological products and the weakened advantage in the prices of domestic products. The focus of the international trade competition for high and new tech products is moving from attention to price competition to non-price competition; and the method of competition is shifting from monotype of goods export to diversified, combined type of trade.

Fourth is the need to further strengthen the work of revitalizing trade through science and technology. The policies encouraging and supporting the export of high and new technological products are not in place and are lacking the character of operation; there is a lack of supportive policy for key science and technology enterprises; there are no mechanisms and specific measures to effectively spur processing trade to take root; small and medium-sized science and technology enterprises have financing difficulties, and therefore need support of special funds earmarked for rejuvenating trade through science and technology.

Meanwhile, the Ministry of Commerce indicated that the Chinese government would work out relevant supportive policies and measures to solve the above problems.

The focus of those policies is funding support. The government will increase its capital support for the export of high and new technological products and will draw a certain amount annually from the central foreign trade development fund, an amount that will be increased year by year.

Article from page 2 of International Finance News, December 3; translated by PD Online staff member Gao Lanrong.

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