China began to open its door to the outside world in the 1980s. However, it was not until 1992 when China decided to transit from the State planned economy to the free market economy. China currently has a complex system of market and administrative controls which regulates access of foreign firms to the China market.

Whereas in the past only a few designated foreign trade corporations (FTCS) were allowed to import goods and services, now more and more factories and enterprises have substantial freedom to pruchase products from abroad. In addition, foreign suppliers may be able to deal directly with Chinese enterprises in the future without any intermediary.

The Ministry of Foreign Trade and Economic Cooperation (MOFTEC) formulates and administers the PRC's foreign trade policy. MOFTEC develops an annual import plan that determines items to be imported and issues the necessary

Import licenses. On January 1, 1992, PRC adopted the Harmonized System for custom's classification.

Major issues related to exporting to China are outlined as follows:

1. Import license-

Products require import licenses include certain types of consumer goods, raw materials and production equipment. Issuance of an import license typically requires approval from several government agencies including local government authorities.

2. Tarriffs (ranging from 3% to 250%)-

a. For countries which China maintains a trade agreement with mutually beneficial tariff status, or for encouraged imports, the tariffs are minimum,

b. The tariffs are prohibiting high if imports are considered threatening to domestic manufacturing.

3. Top selling commodities-.

The U.S. Embassy in Beijing has compiled a list of the PRC's best prospects for U.S. companies, in order of estimated importance, as follows:

(1) Aircraft and parts
(2) Agricultural chemicals
(3) Industrial Chemicals
(4) Oil and gas field machinery and services
(5) Computers and peripherals

[ Next ] [ Up ] 

Copyright (c)1999 theshipping.com  All rights reserved.