Firms suffer losses of $3b because of trade barriers

Companies in Zhejiang Province, an export-oriented region of eastern China, suffered losses of $3.06 billion due to trade barriers last year, Xinhua News Agency reported over the weekend.

The heaviest losses were suffered by private enterprises, which accounted for about 84 percent of the total losses. The mechanical and electrical equipment industries were hardest hit, with a loss of $1.62 billion. Companies in Wenzhou accounted for half of the losses.

According to the report, the Zhejiang Entry-Exit Inspection and Quarantine Bureau used a random sample of 1,903 out of 46,597 separate enterprises, and found that 33.37 percent of export-oriented firms were affected by overseas technology and trade barriers, resulting in cancelled orders and returned goods.

Zhu Hong, an official from the bureau, was quoted as saying that the main barriers have been in the areas of quality certification and the requirements for pesticides and veterinary drug residues, which suggests that the importing areas and regions are placing a greater emphasis on health, environment protection and safety when evaluating potential imports.