China exporters face cost hike from eco laws

CHINA WATCH “Made in China” goods may rise in price, due to severe environmental-protection policies coming into force in China.

There is no free lunch in this world.  “Made in China” products are so cheap not only because of cheap labour but poor enforcement of environmental and pollution laws.

It is said in China that exporters used to sacrifice the environment to achieve lower cost, but now if they violate new green rules, they could be banned from trading abroad for up to three years, according to the latest notice issued by China’s Ministry of Commerce.

Chinese exporters may see their production costs rise by five to ten percent, if a new policy to force exporters to abide by environmental protection rules comes into force, said an official from the Ministry of Commerce (MOC).

The MOC has issued a notice that exporters would be banned from trading abroad for one to three years if they were found violating environmental protection rules.

Exporters would pay extra for discharge facilities and environment testing, MOC official Chen Guanglong said on Monday.

Some exporters have ignored the country’s regulations on environmental protection while striving for lower costs, according to the notice jointly published by the MOC and the State Environmental Protection Administration.