Japan cancels most favorable treatment: experts predict little impact on my exports

The Japanese government put aside the cancellation of experts on China’s most-favoured-nation treatment that the price advantage is still not affecting my exports.

According to a report by the Japanese media recently, the Japanese government has said that it is necessary to reconsider the "Most-Favored-Nation" treatment system that China has implemented.

At present, China uses the “Most Favoured Nation” treatment system to export Japanese goods. In addition to gloves, handkerchiefs, blankets, knee pads, and other daily necessities, products such as cosmetics, glass products, and industrial products are also entering the Japanese market.

However, Xu Fengxian, an economic research expert at the Chinese Academy of Social Sciences, said in an interview with this newspaper this morning that even if Japan adopts such a policy adjustment, it will have little impact on China’s exports to Japan. Japan feels uneasy about Chinese product expansion

The report stated that the establishment of the "Most Favoured Nation" system is aimed at stimulating exports of some developing countries and achieving the purpose of supporting the economy. China has made the most profit under this policy, and China's economy has developed rapidly and is daunting. Japan has called on the government to cancel China's "most favored country" treatment.

Xu Fengxian said that the cancellation of Japan’s “MFN” treatment on China will not affect the relations between the two countries.

He explained that under the WTO framework, developed countries are giving developing countries a common, non-discriminatory and non-reciprocal system of tariff preferences for the export of manufactured goods and semi-manufactures, and beneficiary countries can enjoy duty-free or most-favored-nation rates. The concessions.

China has just surpassed Japan to become the second largest economy in the world, and its per capita GDP reached 4,000 US dollars, which has reached the level of moderately developed countries. "According to the provisions of the WTO, most-favoured-nation treatment is a preferential tariff policy aimed at developing countries by developed countries. It is normal for Japan to cancel the MFN status at this moment," said Xu Fengxian.

He said that most-favoured-nation treatment usually exists in two countries with trade balance, or that developing countries are in deficit. In Sino-Japanese trade, China has a large surplus with Japan, so Japan is uneasy about the expansion of Chinese products. The low price advantage of Chinese products is still quite obvious

According to data from Japan's Ministry of Finance, in 2008, Chinese goods accounted for 77.9% of the goods exported to Japan using the “most favored nation” system, which accounted for 10% of Japan’s market share.

Zhejiang Haining Dongrun Knitting Co., Ltd. is a company that specializes in exporting footwear and other textile products to Japan. Mr. Xu, the company’s principal, told reporters that the profits of such enterprises are very small. If they cancel tariff preferences, they will certainly increase them moderately. price.

According to Xu Fengxian, Chinese exports to Japan are mainly energy and daily necessities. Among them, textiles and daily necessities are mainly used to enjoy the most favorable tariff system. "SMEs, especially the textile industry, have mainly won low prices in the export process in the past." He said, "Since China's prices are too low compared to the world, even if prices are raised due to taxation, the low prices of Chinese products are still quite obvious. ."

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