(Forbes, Oct 31, 2006) China will introduce temporary tariffs on 110 energy-consuming export goods in a move to curb its trade surplus and conserve energy, state media reported.

As part of the same policy, which takes effect Wednesday, import duties on 58 products will be cut, the China Daily reported, citing the finance ministry.

'Clearly, this move shows that the Chinese authorities now attach more importance to external trade balance and domestic industrial restructuring than merely double-digit trade growth,' the paper's editorial commented.

The rise in export taxes and cut in import duties will 'put a drag on the country's soaring trade surplus,' it added.

China's trade surplus was 110 bln usd in the first nine months of the year, already beating the record 102 bln usd surplus for 2005.

While characterizing the tariffs as 'temporary,' the paper did not say when they would expire.

Five pct export tariffs will be imposed on oil, coal, coke and crude oil while 10 pct will apply to non-ferrous metals, some minerals and 27 other iron and steel products, the report said.

Wooden flooring and disposable chopsticks will also be taxed at 10 pct while 15 pct will be charged on copper, nickel and other metallurgical products, it said.

Import tariffs on a range of items, including 26 energy and resource products such as oil, coal and aluminum, will be cut from 3-6 pct to 0-3 pct, it said.

The policy is also expected to rein in exports which rely heavily on energy and resources and put a brake on the development of energy-intensive industries, the paper said.

The policy will boost energy efficiency and keep manufacturers away from energy-intensive sectors, it said.

'It is a very positive move, which is designed to enhance energy efficiency, optimize the national energy structure and rationalize energy and resource-intensive sectors,' an official of National Development and Reform Commission was quoted as saying.
source:Forbes