US
Dollar Exchange Rates of 16th July
2007
China Yuan
7.567
Report from China
Ministry of Commerce adds to list of prohibited commodities
The Catalogue of Prohibited Commodities in Processing Trade (Decree No.44), published by the Ministry of
Commerce and the General Customs Administration, was released on 23 July 2007.
The catalogue includes products of labor-intensive industries, including some wooden
doors and wooden furniture, which are prohibited from being exported. The Catalogue will take effect on 23
August 2007 and is aimed at optimizing the export structure of China¡¯s commodities, controlling the exports
of high energy consuming and polluting products and restraining the export of both
low added value and low technology products.
The previous Catalogue of Prohibited Commodities in Processing Trade (Decree No. 17, 2007),
took effect on 26 April 2007. This Catalogue prohibited fuelwood, chips and
charcoal from being imported and logs from being exported.
Reduced export rebate hurts flooring industry
Local experts estimate that the 8% reduction in China¡¯s new export tariff rebate rate for flooring will cause a 20%
rise in costs to China¡¯s flooring industry. The twenty percent rate is derived
from: the cost of non-installment patent purchase fees of US$100,000 to US$120,000 if
selling to the U.S. market or US$0.65 when selling 1m2 of flooring, the 3% to 5% cost increase caused by the yuan¡¯s
appreciation, and the reduction of the export tariff rebate rate for laminated flooring and other floor enterprises by
8%. Experts suggest that some Chinese laminated flooring enterprises only make 10-20% profit, and others profit
solely from the export tariff rebate. As a result, these companies will lose further profits in the future. China¡¯s
floor export enterprises will continue to face pressure from the revision of China¡¯s export tariff rebate policy.
Suifenhe City is the capital of China¡¯s wood industry
In April 2007, Suifenhe City was awarded the ¡°The Capital of China¡¯s Wood Industry¡±. Timber
imports through Suifenhe City, located in the central region of Northeast Asia, accounted for
over 30% of China¡¯s national total in 2006. This has made Suifenhe City one of
the most important timber importing and distributing bases in China.
Traders from Fujian, Liaoning, Hong Kong and Taiwan come to the city to establish factories.
Presently, there are 410 timber processing enterprises with a total annual
processing capacity of 4.5 million m3. During the first half of 2007, timber imports in Suifenhe City were 3.95 million
m3, valued at US$420 million, up 13% in volume and 27%in value from the same period in 2006.
Lianyun Port ranks first in wood based panel exports
Wood based panels through Lianyun Port make up over 50% of the national total, with exports
reaching 2.1279 million m3 during the first half of 2007. This ranks it first
in wood-based panel exports. The rise is due to: the booming demand for wood-based panels on the
international market; rapid development of export-oriented panel processing industry in north Jaingsu and
south Shangdong regions; and the concentration of 30 woodbased panel processing and
exporting enterprises in the port industrial zone.
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