On May 23, the Ministry of Commerce pledged on its website to further improve its early-warning system for imports that may harm domestic industries and distort local markets.

It said it would make special plans in line with the 11th Five-Year Plan (2006-2010), coordinate departments involved to ensure effective cooperation and focus on early warning systems for key local industries.

The announcement was in addition to a guideline issued on April 25 that set a goal to monitor the country’s main industries and economic zones and establish an early-warning system on damage to local industries from imports by the end of 2006.

The early warning system was first discussed in January 2003, and the recent amendment aims to conform to Foreign Trade Law, which last year increased areas to be covered by the system, and to solve problems in past practice.

Its goal is to collect, analyze and publish accurate and timely information; respond rapidly and effectively; and enable cooperation between government, industrial associations, enterprises and intermediaries.

The guideline said the ministry would give priority to the following products and services:

l         Products and services that play an important role in local regions or the domestic industry, but are easily influenced by imports;

l         Products and services that have comparative advantages in a local region or domestic industry and are significant for economic development;

l         Products and services that are small-scale, but concern the interests of the nation and people, and are easily impacted on by the international market;

l         Products and services in budding industries highlighted by local development.

Apart from public information, the ministry suggested sample surveys or monitoring of key enterprises to gain first-hand data. It also said that expert panels, comprising those specialized in industry, trade, law and economic analysis, should be set up to monitor developments.

The newly amended rule added service and technology sectors to its monitoring list, and said a nationwide emergency response system should be adopted.

To ensure efficiency, the guideline defined responsibilities of the ministry, local authorities, industrial associations, chambers of commerce, intermediaries and research institutions.

(China.org.cn by Tang Fuchun, May 29, 2005)