China tightening exports to reduce surplus: WTO

14/05/2008 17:05:12

The World Trade Organisation says China has made its export regime more restrictive in part to reduce its large trade surplus.

In its review of China's trade policies, the WTO says Beijing uses a variety of measures to restrain, if not prohibit, exports of a considerable number of products.

These measures include export taxes, reduced rebates of taxes on exports, export prohibitions, licensing and quotas.

The WTO says while some of these measures aim to meet Beijing's international obligations, many are intended to reduce China's large trade surplus - a source of trade friction.

In recent years China has been engaged in several high profile trade rows with the US and the EU over items ranging from textiles, shoes to auto-parts.

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