China puts new curbs on processing trade

China on Monday announced a new policy that seeks to curb the development of process trade in labor-intensive industries, in a bid to reduce its ever rising trade surplus, CBN reported (in Chinese). The new policy will prohibit and restrict local enterprise from engaging in specific processing trade. The catalog of products covers 1,853 products in plastics, furniture and textiles and other labor-intensive industries.  According to a statement by the Ministry of Commerce, the move targets high-polluting and -energy-consuming industries in eastern regions of China. Customs data shows the nation's processing trade volume in the first six months rose to US$440.9 billion , accounting for 45% of the China's imports and exports.