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According to the China Chemical News report on November 15, recently, the National Development and Reform Commission and the General Administration of Customs announced that the major industrial industries in the first three quarters of operation and import and export show that China exports 308,000 tons of pesticides, worth 800 million US dollars, respectively, compared to 2005. The same period (the same below) decreased by 3.5% and 24.2%; imports 31,000 tons, an increase of 13.3%. This is the first time since 1997 that the total amount and total value of China’s pesticide exports have experienced negative growth. Authoritative sources in the industry reminded that the increase or decrease in the import and export of pesticides shows the pressure for industrial upgrading of pesticides in China.
According to industry analysts, there are policy factors for the reduction of pesticide exports in 2006: The Chinese government reduced the proportion of some pesticide export tax rebates at the end of 2005. In September 2006, the export tax rebate policy for pesticides that have been included in the PIC and POPs Conventions was lifted. The Ministry of Commerce, the General Administration of Customs and the State Environmental Protection Administration have recently drafted a new batch of banned commodity catalogs for processing trade. The pesticide products in the catalog account for a large proportion and have an impact on the export of pesticide varieties. But more importantly, the pesticide industry is facing a shift from a product with low quality, low capital/labor input ratio to a high quality, high capital/labor input ratio. In the context of the decline in the total amount, the composition and trading methods of pesticide export companies have also undergone certain changes.
The pressure of industrial upgrading indicated by the change in the number of pesticide export trade has already been emphasized by the industry. They pointed out that there are four problems in China's pesticide export trade that need attention.
The first is that the export of pesticides lacks brand awareness and market awareness, and the technical content of export products is low. Second, there are numerous pesticide import and export companies, and they are small in scale and lack effective industry coordination. Third, it is more difficult to open up the international market for pesticides. Fourth, due to the rapid increase in the export volume of processing trade, environmental protection issues have been highlighted.
China's pesticides face industrial upgrading pressure
Statistics show that in the first three quarters of 2006, China exported 308,000 tons of pesticides, which was a year-on-year decrease of 3.5%; imports were 31,000 tons, an increase of 13.3% year-on-year. According to industry sources, the increase or decrease in the import and export of pesticides indicates the pressure for industrial upgrading of pesticides in China.