Exporters warned of technical barriers
By Jiang Wei (China Daily)
Updated: 2005-08-18 08:37

Chinese exporters have been urged to be more cautious about technical barriers in overseas markets following the seizure of electric tools worth about US$80 million in Germany.

It is reported that some tools in an earlier shipment were found to contain high amounts (0.2 per cent) of PAH a chemical carcinogen by a German inspection company.

The latest batch of tools were seized at a port by German Customs following that report, according to the China Chamber of Commerce for Import and Export of Machinery and Electric Products (CCME).

The German Government has started inspecting all made-in-China electric tools and also asked local markets to take certain products off the shelf.

The seized goods are from a wide range of companies, including ALDI and Bosch, both well-known German electric tool brands with production facilities in China.

Their value is expected to be even higher as some enterprises have not reported the full figure because banks might be worried about their credit.

The incident has caused considerable concern among Chinese electric tool makers as well as trade bodies.

"We are keeping an eye on the matter although we have not yet received any information from the Chinese Embassy in Germany," said Zhang Peisheng, director of the Electric Tool Branch of CCME.

Since there is no specific regulation in Germany governing the content of PAH in electric tools, "it is unfair that the German Government took action against Chinese products before it published any standards for companies to follow," Zhang said.

"It is also the first time that we have encountered such a problem," he added.

He hoped that the goods would be allowed to enter the German market after negotiations but was worried about consumer reaction.

In fact, what the insiders fear most is a possible chain reaction to the incident.

"The inspection and seizure are very likely to affect more categories of China-made electric products," Zhang said.

It could also have a cascading effect in the European market, the largest export destination of Chinese electric tools, as Germany is the biggest member of the European Union and a formulator of technical standards.

It is forecast that Chinese enterprises will face more environment-related "green barriers" and other forms of technologic barriers in the European market, particularly after the European Union published the Restriction of Hazardous Substances in Electrical and Electronic Equipment (RoHS) Directive.

Zhang warned that it is time for Chinese enterprises to review all foreign trade conflicts and trade barriers.

"They should pay more attention to product security and environmental issues when exporting to developed countries," he said.

He suggested companies consider long-term strategies instead of chasing quick profits.

His remarks were echoed by Li Yushi, a senior researcher at the Chinese Academy of International Trade and Economic Co-operation, who said Chinese firms had to abide by the technological standards of developed countries.

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