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China bans trading of materials for processing
Latest Updated by 2006-11-07 09:53:24
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CHINA will bar the import and export of commodities like liquefied natural gas and coke for processing in its latest effort to tighten trading of resources products, the government said.

Goods including LNG, liquefied petroleum gas and coke used for the purpose of processing will be banned from being imported and exported, according to a list announced by the Ministry of Commerce, customs and environment protection authorities said over the weekend.

Copper, nickel and other metal raw materials for processing will be forbidden from being exported, while jet fuel, jet kerosene, tin and uranium for processing cannot be imported.

The new policies will take effect from November 22.

Processing trade, which became popular in China from the 1990s, accounts for a significant part of the country's total exports. But Chinese processors only earn a low processing fee while parts of higher added value are exported.

The Chinese government has updated its list of banned commodities for the processing trade, with the latest update including energy and resource products for the first time.

"It is a continuation of the government's action in reducing export tax rebates and adjusting export taxes over the past months," Li Yushi, deputy chief of the research department under the ministry, said of the latest update.

"It is another important step forward to improve the structure of China's foreign trade expansion," Li was quoted by Xinhua news agency as saying.

China in September cut export incentives for goods including steel products and textiles.

At the end of last month it announced to raise export taxes on oil, steel and some nonferrous metals to help cut its record trade surplus and meet domestic demands.

Editor: Yan

By: Fu ChenghaoSource: Shanghai Daily web edition
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