October 15, 2007

 

Chinese export engine chugs on, despite bans and greater scrutiny

 

 

Despite a spate of product recalls and growing scrutiny over the quality and safety of its goods, the Chinese export boom continues to accelerate.

 

China's exports for the first nine months of the year were up 27 percent from its record shipments a year ago, the New York Times reported.

 

This indicated that global worries about contaminated pet food, tainted seafood and toxic toys and toothpaste did not slow down the Chinese export engine, the paper said.

 

The trade surplus with the rest of the world ballooned to US$187 billion through September, up from US$177.5 billion for all of 2006, and much of the gains have come from the US and the EU, which are importing more Chinese goods.

 

Even in categories where China was hit by recalls earlier this year, like food and toys, exports rose sharply, according to the World Trade Atlas.

 

Chinese food and agriculture exports to the US were up 27 percent through August, to about US$2.7 billion.

 

However, one area affected by US bans was China's seafood, in particular, the eel.

 

Chinese exports of eel to the US , fell 94 percent after the US  Food and Drug Administration moved last summer to block the imports of certain types of seafood, including eel and shrimp, because of concerns about excess antibiotic use.

 

Japan, a huge importer of Chinese seafood, followed suit by canceling large orders for eel. Japanese eel imports through August dropped to about $59 million from $101 million compared with the same period in 2006.

 

To guard against safety problems in future, more than 60 percent of Chinese companies who responded to a recent survey said they were heavily investing in new quality control systems, according to Global Sources, a Hong Kong company.

 

With the euro rising sharply against the dollar and Chinese yuan, Chinese goods now look even cheaper to European consumers.

 

European officials are now pressing China to allow the yuan to appreciate and warn that the growing Chinese trade imbalance with the European Union could harm relations.