Nineteen technical service centers were formally established in Beijing on Tuesday to analyze technical standards for market access to foreign countries.

 

Wei Jianguo, vice minister of commerce, said the move was aimed at assisting domestic firms respond rapidly to foreign technical trade requirements.  

 

With the development of free trade, traditional barriers such as tariffs, quotas and licenses have given way to technical obstacles which are often presented under the guise of environmental protection or consumer health.

 

China's official statistics revealed that nearly two-thirds of China's export-oriented companies had been affected by the technical standards of foreign countries with their aggregated economic losses estimated to be around US$20 billion.

 

"To defend the interests of domestic companies and to have a bigger say in the world market we must be pro-active and not reactive in taking steps to deal with foreign trade barriers," said Zhang Xiangchen, director-general of the Dept. of World Trade Organization (WTO) Affairs of the Ministry of Commerce.

 

Zhang said that every WTO member had the legitimate right to question a new trade regulation of other nations within 60 days of it being made public. However, lack of assistance from technical experts and the complexities of standards often frustrated companies and prevented them from taking effective action.  

 

To remedy the situation, the Ministry of Commerce required the first service centers to carefully track technical standards development in global markets and issue regular reports for the government and relevant industries.

 

As supporting institutions of the Ministry of Commerce, the service centers are required to submit in-depth reports on the impact of technical barriers on Chinese businesses, to evaluate the country's current technologies and advise on the decision making procedures of the governments. 

 

 

Professor Ma Dejun, vice president of the China Household Electrical Appliances Research Institute, which has been designated as such a service center, said companies like Haier and Lenovo, excited by the new service, had offered to help in the compilation of an export technology guide.

 

"Since our objective is to resolve the common problems faced by industry, companies are very cooperative and ready to help," Ma said.

 

Apart from the household electrical appliances sector, the first service centers will also focus on technical standards related to aquatic products, honey, food quality, fuel, leather, raw silk, textiles, down clothing, porcelain, instruments and apparatus, computers along with parts and accessories, toys and packaging.

 

Between 2006 and 2010, it's envisaged that 100 technical service centers will be opened which should cover more than half the country's exporters and more than 80 percent of China's export markets. Each of the centers will be subject to regular inspection. Those who fail inspections will have their licenses removed.

 

(Xinhua News Agency June 7, 2006)