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November 2, 2001



Japanese Industrialists Worry About Chinese Tariff

Chinese government has recently decided to levy special tariff on three kinds of Japan-made products: automobiles, mobile wireless phones and air conditioners. Correspondingly, widespread worries occur in Japanese industrial circles that the Japanese enterprises may suffer from an unfavorable status in the Chinese market.

A person of auto circle said, "China is an important market for Japan's exports. Should China impose long-term retaliation, other countries may seize the chance to occupy the market with their products."

Since the three kinds of products for the special tariff are the ones that have in recent years reported large margin of increase in export volume, the business of Japanese enterprises will inevitably be affected by the tariff levying. The trend of the situation has arrested close attention of all Japanese manufacturers.

Statistics indicate, Japanese auto manufacturers exported 47,000 autos to China in 2000. In spite of the small proportion of one percent only of the gross export volume from Japan, the number of cars exported to China last year surged by 36 percent. Japanese auto enterprises are worrying that once China adopts retaliating measures, they will be deprived of a favorable momentum in increasing their exports to China, thus losing the foothold in the Chinese market.

On the other hand, Japan has exported about 1.45 million MPs to China, approaching 20 percent of its gross export volume (8.3 million). If China inflicts special tariff, its exports will inevitably have to suffer.

(People's Daily 06/20/2001)

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