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Updated: 2007-08-10 16:37

The list of commodities restricted from processing trade will be updated every year, in a bid to establish a more transparent, dynamic, and predictable trade mechanism, said Wang Qinhua, director of Department of Mechanic, Electronic and Hi-Tech Industry of the Ministry of Commerce (MOC) yesterday in a online interview.

The list of products, issued by the MOC and the General Administration of Customs is a major macro control measure concerning 1,800 products. Ge Li, head of processing trade and bonded supervision division under the Customs said while adjustments in 1999, which mostly tightened regulations on the processing trade industry, the 2007 adjustment is to focus on promoting sustainable and healthy development of the entire sector in the international context.

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"My calculations suggest under the current interest rates, all 1,800 products on the list total some US$30 billion trade volume and produces only 600 million yuan interest. That's no heavy financial burden for exporters, mainly located in the east," said Wang Qinhua, adding enterprises should face the challenge by transforming their production structures.

Wang also noted the new policy is a great opportunity for the relatively backward Central and West China. Local governments should make use of their competitive edge and boost economic growth, she added.

According to Wang, the plan is to transform the processing trade sector in three aspects: first, to upgrade product and production structure in the industry; second, to balance the allocation of processing manufactures and fix the current situation in which 97.5 percent of enterprises in the sector are located in the east and only 2.5 percent are in Central and West China; third, to shift from sheer processing to design, R&D, branding, service, and sales.